US L/A industry sees 13% net income decline in 2024

Written by Adam Cadle

07/04/2025

The US life/annuity (L/A) industry posted a 13% decline in net income to $33.3bn in 2024, driven partly by a rise in expenses of nearly 15%, according to AM Best.

Total income increased by 12% from the previous year, driven by increases of around 20% in premiums and annuity considerations and early 11% in net investment income. However, a spike in surrenders by $125.5bn, which led to the overall increase in industry expenses, resulted in the pretax net operating gain falling year over year by just under 28% to $48.2bn.

Despite net realised capital losses falling by nearly 58%, the L/A industry still experienced the double-digit percentage drop in net income.

Capital and surplus at year-end 2024 increased slightly from the end of the previous year to $513.3bn, as a combined $56.4bn in net income, contributed capital and other changes in surplus were reduced by $47.1bn, owing to changes in unrealised losses, asset valuation reserves and stockholder dividends.

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