US L/A industry sees net income increase to $11.5bn

Written by Adam Cadle

17/06/2025

The US L/A industry saw its net income increase significantly to $11.5bn in Q1 2025 compared with $1bn in the same prior-year period, AM Best has revealed.

Total income increased by 4% compared with Q1 2024, driven by a 140% increase in other income (largely driven by a company reserve adjustment) and a 12% increase in net investment income.

Pretax net operating income grew by 124% over the same prior-year period to $14.7bn.

A 38% reduction in taxes, with net realised capital losses nearly cut in half, boosted the industry’s net income to more than 10 times from the same period in 2024.

The data is derived from companies’ three-month interim statutory statements that were received as of 5 June 2025, representing an estimated 93% of total industry premiums and annuity considerations.

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