US publicly traded L/A insurers’ revenues down by 12%

Written by Adam Cadle

20/04/2023

Premium growth for publicly traded US life/annuity (L/A) insurance companies continued to recover in 2022, but was countered by declines in investment and fee income that drive total GAAP revenue down by 12% to $291.5bn, according to AM Best.

The credit ratings agency said another factor contributing to the revenue decline was $22.9bn in realised losses.

With rising interest rates in 2022, L/A insurers ramped up fixed annuity production and were able to invest in higher-yielding securities and offer higher crediting rates.

Net investment income declined by roughly $11.5bn to $78.6bn. The persistent drag from the low interest rate environment continues to impact margins, but ongoing growth in general account invested assets has pushed investment income higher.

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