Annuities

  • The Productivity Imperative For US Life & Annuities Carriers
    The Productivity Imperative For US Life & Annuities Carriers

    Productivity is a vital element of economic value creation; Research reveals what makes top performers different

    The US life and annuities industry is searching for value after a decades-long struggle to achieve profitable growth. Driven by slow premium growth, lower investment returns, and rising costs, industry returns once again dipped below the cost of equity at the start of 2020, bringing the 35-year average of returns in excess of capital to…
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  • U.S. Life/Annuity Industry’s Net Income Cut Nearly In Half In 2020
    U.S. Life/Annuity Industry’s Net Income Cut Nearly In Half In 2020

    Measuring the health of the industry

    The U.S. life/annuity (L/A) insurance industry saw its net income cut nearly in half in 2020, to $24 billion from $45 billion. These preliminary results are detailed in a new Best’s Special Report, titled, “First Look: 12 Month 2020 Life/Annuity Financial Results,” and the data is derived from companies’ annual statutory statements received as of…
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  • U.S. Life Insurance Policy Sales Increase 2% In 2020
    U.S. Life Insurance Policy Sales Increase 2% In 2020

    Direct-to-consumer sales drive growth in whole life policy sales

    While total life insurance new annualized premium fell 3% in 2020, the number of policies sold in 2020 increased 2% for the year, driven by strong whole life and term sales, according to LIMRA’s U.S. Individual Retail Life Insurance Sales Survey.
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  • US Life & Annuity Industry Carries Mixed Momentum In 2021
    US Life & Annuity Industry Carries Mixed Momentum In 2021

    Data shows a 'wide range of outcomes for the largest individual annuity writers'

    The pace of the U.S. life and annuity industry's emergence from COVID-19 disruption accelerated late in an otherwise challenging 2020, setting the stage for favorable year-over-year comparisons in key individual business lines in 2021.
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  • U.S. Life/Annuity Industry Not Out Of The Woods Yet
    U.S. Life/Annuity Industry Not Out Of The Woods Yet

    Despite remaining well-capitalized during the pandemic

    Most rated U.S. life/annuity (L/A) insurance companies have remained well-capitalized during the pandemic to date, and have benefited from favorable mortality and morbidity experience, low credit impairments and rebounding equity markets. However, according to AM Best’s annual Review & Preview market segment report, the sales process remains a challenge, with economic risks carrying over into…
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  • Total Annuity Sales Fall 9% In 2020
    Total Annuity Sales Fall 9% In 2020

    Protection-focused annuities expand market share as COVID-19-related economic disruptions drive investors to safety

    U.S. annuity sales totaled $219 billion in 2020, 9% lower than sales in 2019, according to results from the Secure Retirement Institute® (SRI®) U.S. Individual Annuity Sales Survey.
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  • Total Annuity Sales Fall 9% In 2020
    Total Annuity Sales Fall 9% In 2020

    Protection-focused annuities expand market share as COVID-19-related economic disruptions drive investors to safety

    U.S. annuity sales totaled $219 billion in 2020, 9% lower than sales in 2019, according to results from the Secure Retirement Institute® (SRI®) U.S. Individual Annuity Sales Survey.
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  • Despite Navigating Pandemic Well in 2020, U.S. Life/Annuity Industry Not Out of the Woods Yet
    Despite Navigating Pandemic Well in 2020, U.S. Life/Annuity Industry Not Out of the Woods Yet

    Benefiting well from favorable mortality and morbidity experience, low credit impairments and rebounding equity markets

    Most rated U.S. life/annuity (L/A) insurance companies have remained well-capitalized during the pandemic to date, and have benefited from favorable mortality and morbidity experience, low credit impairments and rebounding equity markets. However, according to AM Best’s annual Review & Preview market segment report, the sales process remains a challenge, with economic risks carrying over into…
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  • Average Funded Status Of Large Pension Plans Rises To 86.2% in 2020
    Average Funded Status Of Large Pension Plans Rises To 86.2% in 2020

    Contributions increased in 2020, but appear on track for long-term low in 2021

    The average funded status for the largest pension plans increased to 86.2% in 2020, reaching the highest level in eight years, according to Russell Investments’ annual analysis of 20 publicly listed U.S. corporations with more than $20 billion in pension liabilities. Dubbed the $20 billion club, these large plans, which represent nearly 40% of all…
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  • Year-End 2020 Self-Directed 401(k) Balances Up 13% Year-Over-Year
    Year-End 2020 Self-Directed 401(k) Balances Up 13% Year-Over-Year

    Despite ongoing volatility and Q1 market lows

    According to Charles Schwab’s SDBA Indicators Report, an industry-leading benchmark on retirement plan participant investment activity within self-directed brokerage accounts (SDBAs), the average account balance across all participant accounts finished Q4 2020 at $331,664, a 13% increase year-over-year and a 10% increase from Q3 2020.
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