Best’s News & Research Service - March 01, 2018 07:54 AM (EST)
A.M. BestTV: U.S. Life/Annuity Sector Looks to Strong Financials, Slow Growth
- March 01, 2018 07:54 AM (EST)
Oldwick //BestWire// - In this A.M.BestTV episode, Senior Director Ken Johnson and Director Thomas Rosendale, A.M. Best, examine a new report on the expected environment for the life and annuity insurance sectors, including individual life insurance, fixed and variable annuities, interest rates and more. Click on http://www.ambest.com/v.asp?v=rplife218 to view the entire program.
The U.S. life/ annuity sector performance for 2017 can be categorized by companies having strong balance sheets and good earnings; however, A.M. Best’s outlook for the segment remains negative.
“In 2017 individual life sales were up about 2%, which is what A.M. Best expected for the year,” said Rosendale. “That follows a year of about 3% growth and 2018 looks to be the same low single-digit growth. On the individual annuity side, there were two consecutive years of declining sales, primarily driven by variable annuities. A.M. Best anticipates it will be much the same in 2018, but this time on a much declined basis.”
Johnson highlighted the impact of the recent tax reform bill.
“Overall, tax reform is a net positive for the industry, as it moved the rate to 21% down from 35%, which will flow to companies’ bottom lines,” said Johnson. “Additionally, those companies that compete with international players will also find themselves a little more competitive.”
To access a copy of this market segment report, titled, “U.S. Life/Annuity: 2018 Review & Preview,” please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=270379 .
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