US life/annuity industry’s net income drops 80% in Q1 2024

Written by Adam Cadle

18/06/2024

The US life/annuity industry saw its net income drop by 80% in Q1 2024 compared with the same prior-year period, AM Best has revealed.

The industry saw total revenue increase 16% over Q1 2023, driven by a 21% increase in premiums and annuity considerations, a 44% rise in other income and an 8% increase in net investment income.

However, expenses for the life/annuity segment increased by just shy of 20%, largely due to a $40.9bn increase in surrender and other benefits. The resulting pretax net operating gain of $6.9bn is half of what the industry recorded in the same prior-year period.

Factoring in $2.5bn of net realised capital losses, the industry’s net income of $1.6bn represents a $6.5bn decline from the same period in 2023.

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