The United States life and annuity industry posted a 5.6 per cent increase in net income in 2022, according to a recent report from AM Best, entitled First Look: 2023 Life/Annuity Financial Results

Net income of US$36.8-billion, they say was largely driven by an increase in premiums, annuity considerations and other income. Total income rose 11 per cent in 2022 from the prior year, coming in at US$989.2-billion for the year. They say this was driven by an 11.2 per cent increase in premiums and annuity considerations and a 54.2 per cent increase in other income.

Total expenses for the industry grew by 10.9 per cent. Net income plus contributed capital and change in asset valuation reserve totalled US$55.2-billion. AM Best says the companies reviewed account for an estimated 97 per cent of total industry premiums.

They conclude saying holdings in cash and short-term investments declined three per cent from the end of 2021 while investments in mortgage loans continue to climb, increasing 8.5 per cent. They say the asset class now makes up 13.4 per cent of total invested assets.