Best’s Special Report: U.S. Life/Annuity Industry Records 13.8% Net Income Increase in Nine-Month 2025 Period

December 12, 2025 at 11:06 AM EST

The U.S. life/annuity industry reported a 13.8% increase in net income during the first nine months of 2025 compared with the same prior-year period, driven in part by an 8.1% increase in net investment income, according to a new AM Best report.

This financial review is detailed in a new Best’s Special Report, “First Look: Nine-Month 2025 Life/Annuity Financial Results,” and the data is derived from companies’ nine-month 2025 interim statutory statements that were received as of Dec. 4, representing an estimated 96% of total U.S. life/annuity industry premiums and annuity considerations.

According to the report, the U.S. life/annuity industry’s total income increased 17.2% from the prior-year period, driven by a $130.4 billion increase in other income. In addition to higher net investment income, the increase in total income was also largely attributable to a combined $84.5 billion increase of reserve adjustments on reinsurance ceded at American General Life Ins Co. and Athene Annuity and Life Co.

A pretax net operating gain of $33.6 billion marked a 15.9% increase from the prior-year period. A 17.2% reduction in taxes was offset by an increase in realized capital losses resulting in net income of $23.7 billion, up 13.8% from the same period in 2024.

Capital and surplus increased 3.6% from the end of 2024 to $525.3 billion, as a combined $48 billion of net income, change in unrealized gains, contributed capital, and other changes in surplus was reduced by $29.8 billion, consisting of a change in asset valuation reserve and stockholder dividends. Investment allocation to the mortgage loan asset class continues to grow and now constitutes 13.8% of total invested assets.

To access the full copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=360910.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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