The U.S. life/annuity (L/A) industry posted a 13% decline in net income to $33.3 billion in 2024, driven partly by a rise in expenses of nearly 15%, according to AM Best. These preliminary results are detailed in a new Best’s Special Report, titled, “First Look: 2024 Life/Annuity Financial Results,” and the data is derived from companies’ annual statutory statements received as of March 17, 2025, representing an estimated 99% of the total L/A industry’s premiums and annuity considerations.
According to the report, the L/A industry’s total income increased by 12% from the previous year, driven by increases of approximately 20% in premiums and annuity considerations and nearly 11% in net investment income. However, a spike in surrenders by $125.5 billion, which led to the overall increase in industry expenses, resulted in the pretax net operating gain falling year over year by just under 28% to $48.2 billion. Despite net realized capital losses falling by nearly 58%, the L/A industry still experienced the double-digit percentage drop in net income.
Capital and surplus at year-end 2024 increased slightly from the end of the previous year to $513.3 billion, as a combined $56.4 billion in net income, contributed capital and other changes in surplus were reduced by $47.1 billion, owing to changes in unrealized losses, asset valuation reserves and stockholder dividends.
To access the full copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=352643.
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 London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
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