{"id":19445,"date":"2020-09-01T15:20:22","date_gmt":"2020-09-01T19:20:22","guid":{"rendered":"https:\/\/insurancenewsnet.com\/?post_type=innarticle&p=5767669"},"modified":"2020-09-01T15:20:22","modified_gmt":"2020-09-01T19:20:22","slug":"life-annuity-industrys-2020-net-income-falls-66-a-m-best-finds","status":"publish","type":"post","link":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/2020\/09\/01\/life-annuity-industrys-2020-net-income-falls-66-a-m-best-finds\/","title":{"rendered":"Life\/Annuity Industry\u2019s 2020 Net Income Falls 66%, A.M. Best Finds"},"content":{"rendered":"


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The life\/annuity industry\u2019s net income fell by 66% in the first half of 2020, compared with the year-ago period, A.M. Best reported today, driven by a major reinsurance agreement inked between Jackson National and Athene.<\/p>\n

This financial review is detailed in a new Best\u2019s Special Report, titled, \u201cFirst Look\u2014 Six-Month 2020 Life\/Annuity Financial Results.”<\/p>\n

Although some life insurers provided COVID-19-related premium refunds to policyholders, the primary reason for the steep premium decline was Jackson National\u2019s ceded coinsurance agreement with Athene Life Re, the report concluded.<\/p>\n

The deal had the effect of moving approximately $27 billion of premium out of the U.S. statutory industry population and into Bermuda.<\/p>\n

Total expenses for the industry increased 1.1%, as a 5% decline in surrender benefits, a 13.3% decline in general and other expenses and $11.6 billion less in transfers to separate accounts offset an 11.4% increase in death benefits.<\/p>\n

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In addition, the premium decline and minimal expense increase resulted in a drop in net operating gain of 95.3% from the prior-year period, to $1.6 billion. Despite the reduction in net income and a 50% decline in unrealized gains, capital and surplus increased by 4.1% to $440.8 billion over the six-month period.<\/p>\n

The data is derived from companies\u2019 six-month 2020 interim statutory statements that were received as of Aug. 26, 2020, A.M. Best said, representing an estimated 98% of total industry premiums and annuity considerations.<\/p>\n<\/div>\n

Read the original article at insurancenewsnet.com <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The life\/annuity industry\u2019s net income fell by 66% in the first half of 2020, compared with the year-ago period, A.M. Best reported today, driven by a major reinsurance agreement inked between Jackson National and...<\/p>\n","protected":false},"author":578,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[],"tags":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/19445"}],"collection":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/users\/578"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/comments?post=19445"}],"version-history":[{"count":0,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/19445\/revisions"}],"wp:attachment":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/media?parent=19445"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/categories?post=19445"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/tags?post=19445"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}