US life insurers’ statutory capital, or total adjusted capital (TAC) grew 9.2% in 2021 to $478bn from $437bn as of YE 2020, Fitch Ratings has said.
The increase in statutory capital was mainly due to gains from investments, most specifically favourable equity markets and strong net investment income driven by alternatives and prepayment income.
Over the last five years, TAC grew at a 5.3% CAGR and increased 21% overall.
The aggregate NAIC RBC ratio for Fitch’s universe of life insurance companies at YE 2021 was 454%, up from 436% at YE 2020.