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Best’s Special Report: U.S. Life/Annuity Industry Sees 5.7% Net Income Decline in 2023

The U.S. life/annuity (L/A) industry posted a 5.7% decline in net income to $37.6 billion in 2023, which included $15.0 billion of net realized capital losses, according to AM Best. These preliminary results are detailed in a new Best’s Special Report, titled, “First Look: 2023 Life/Annuity Financial Results,” and the data is derived from companies’ annual statutory statements received as of March 20, 2024, representing an estimated 99% of the total L/A industry’s premiums and annuity considerations.

According to the report, the L/A industry’s total income slide 1.1% in 2023 from the prior year, driven by a 3.0% decline in premiums and annuity considerations (net of reinsurance), which were offset by a 9.5% increase in net investment income. Industry expenses declined 1.9%, due to a 14.1% reduction in general and other insurance expenses and a $35.8 billion increase in net transfers to separate accounts. The resulting pretax net operating gain of $65.7 billion was up 12.6% from the prior year.

Capital and surplus rose 5%, to $506.1 billion, from the end of 2022, as a combined $69.8 billion in net income, contributed capital, change in unrealized gains, and other changes in surplus were reduced by $47.1 billion, owing to a change in asset valuation reserve and stockholder dividends.

To access the full copy of this special report, please visit

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit

Copyright © 2024 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.


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