A.M. Best Statistical Study: Growth Continued in Third Quarter for U.S. Life Industry.OLDWICK, N.J. -- Based on nine-month financial results, the life/health industry showed improved third-quarter growth over six-month numbers, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. a recent study by A.M. Best Co. While the sustained low-interest-rate environment and spread compression continue to have an impact on industry figures, the industry as a whole continued with its strong rebound rebound (rē´bownd), n/v 1. a recovery from illness. n 2. an outbreak of fresh reflex activity after withdrawal of a stimulus rebound adjective from prior declines in recent years. The total life/health industry's admitted asset base grew 4.8%, an increase of more than 1% from six-month results, with growth among the top 25 life groups being even more pronounced. The majority of the top 25 groups recorded increases in their admitted asset bases, with growth in admitted assets averaging 6% for these groups in total, vs. 3.7% growth through the second quarter. Continuing a trend from recent periods, the top 25 groups have increased their share of the overall industry's admitted assets to more than 77%. Separate-account assets also continued to grow through nine months, with the top 25 groups maintaining their share of approximately 86% of the total industry. While net premium written levels continued to increase through the third quarter, the growth rate slowed from results reported at six months. After-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. net operating gain through nine months continued improvement over the first six months of 2005. The top 25 life groups recorded a 63% increase in after-tax net operating gain compared with the first six months of 2005. These strong operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before have been driven by improved investment income returns, as well as a continued increase in sales of retirement products that has become the industry norm in recent years. Additionally, realized capital gains represented more than $1.6 billion for the top 25 groups and nearly $1.9 billion for the total life industry through the third quarter of 2005. Capital and surplus increased by slightly more than 3% industry wide. More than 80% of the top 25 groups recorded increases in overall adjusted capital and surplus, with approximately half of them recording double-digit growth. Some of the larger changes in capital and surplus in the third quarter were attributed partially to accounting activity related to transactions such as Metropolitan Life's acquisition of Travelers Insurance Co. and American Express' spin-off The situation that arises when a parent corporation organizes a subsidiary corporation, to which it transfers a portion of its assets in exchange for all of the subsidiary's capital stock, which is subsequently transferred to the parent corporation's shareholders. of its financial adviser unit, Ameriprise Financial Ameriprise Financial, Inc. (NYSE: AMP) is a company offering financial advice and products. It is the successor to American Express Financial Advisors (AEFA), which was a subsidiary of the American Express Company. Group. BestWeek subscribers can download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. 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Nonsubscribers can download a PDF copy of the full study (20 pages) for $85 or a combination of the PDF copy plus the spreadsheet file of the study data for $220 from our Web site at www.bestweek.com. Call customer service for more information, (908) 439-2200, ext. 5742. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
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