Life Insurers Recovered Capital Lost During Financial Crisis
A new report from SNL Financial reveals that U.S. life insurers have been able to recover all of the capital and surplus lost amid the global financial crisis over the course of 2009. The 2009 statutory financial results for top-tier life insurance companies and life groups from the Charlottesville, Va. company show that while the companies had their ups and downs, overall they had a good year.
Stats from SNL
According to the report, the life insurance industry’s net income was the single-largest factor in 2009 improvement. The industry as a whole recorded a $21.1 billion profit as compared to a 2008 loss of $51.8 billion.
Another interesting changing was that policyholders’ surplus for 96.8 percent of the top-tier U.S. life insurance companies and/or groups covered by SNL totaled $289.7 billion by last year’s end. This represents a 14.8 percent increase from year ended 2008.
The Financial Crisis Still Has After-Effects
While much looked great for the industry, there was one downside. According to SNL, premiums and annuity considerations saw a sharp 19 percent decline in 2009 and marked the first year-over-year decrease in revenue since 2003.
Additionally, net investment income fell by 3.3 percent from 2008 levels. These drops, according to SNL, show that while much improvement has been made since the financial crisis, the life insurance industry is still suffering from some aftershocks.
Do You Have Life Insurance?
With the life insurance industry bouncing back some, it appears that more people have purchased life insurance policies. Are you one of them? If not, this may be the time to learn the benefits of coverage and determine whether a term or permanent policy is right for you.