U.S. Life/Annuity Insurance Net Income Rises 39% in H1 2025

The U.S. life/annuity insurance industry experienced significant financial growth in the first half of 2025, with net income rising 39% to $19.7 billion compared to the same period in 2024. This positive performance is detailed in a recent AM Best report, which analyzes six-month interim statutory statements for 2024 from companies representing about 96% of the industry's total premiums and annuity considerations.

 The increase in income is attributed to a 6% growth in premiums and annuity considerations and a 9% rise in net investment income, along with other income gains largely influenced by reserve adjustments on reinsurance at American United Life Insurance Co. Industry expenses also increased by 10.2%, but the pretax net operating result improved by 30% to $27.5 billion over the previous year. Despite a nearly 30% reduction in taxes, this benefit was offset by higher realized capital losses, culminating in the overall net income increase.

The report underscores the resilience of the life/annuity sector amid evolving market conditions and highlights the importance of investment income and reinsurance in shaping financial outcomes. AM Best, a major credit rating and analytics provider for the global insurance industry, compiles this analysis, offering valuable insights for insurers, regulators, and market stakeholders on current financial trends and risk management within the U.S. life/annuity insurance marketplace.