Press Release - MAY 29, 2018
Best’s Special Report: U.S. Life/Annuity Insurers’ Net Income Drops Sharply in First-Quarter 2018
FOR IMMEDIATE RELEASE
OLDWICK - MAY 29, 2018
According to the report, premiums and annuity considerations declined 11.7% from the prior-year period, driven by a $23.1 billion reduction in premiums at American General Life Insurance Company in connection with the execution of modified coinsurance agreements with a wholly owned Bermudan reinsurer.
The L/A industry’s capital and surplus increased slightly from year-end 2017 to $376.3 billion as $4.7 billion in net income and contributed capital was negated by $1.6 billion in unrealized losses and a $3.3 billion in stockholder dividends. Pretax net operating gain for the industry declined to $10.6 billion in first-quarter 2018, down 26.1% from the prior-year period. Net realized capital losses of $5.7 billion, partially offset by a $1.9 billion reduction in federal and foreign taxes, helped to bring about the decline in net income.
To access the full copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=273929 .
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