Life Insurers' assets continue growing.Life insurers' asset distribution continues to reflect shorter durations and increased liquidity in anticipation The performance of an act or obligation before it is legally due. In patent law, the publication of the existence of an invention that has already been patented or has a patent pending, of reinvestment Reinvestment Using dividends, interest and capital gains earned in an investment or mutual fund to purchase additional shares or units, rather than receiving the distributions in cash. 1. In terms of stocks, it is the reinvestment of dividends to purchase additional shares. opportunities at higher interest rates. The industry's overall asset allocation Asset Allocation The process of dividing a portfolio among major asset categories such as bonds, stocks or cash. The purpose of asset allocation is to reduce risk by diversifying the portfolio. mix remains steady with only slight increases in holdings of bonds, mortgages, cash and short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments over the past year. Although long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. interest rates fluctuated substantially during 2004, rates as a whole finished essentially unchanged for the year. The yield on 10-year Treasury notes fell 30 basis points during the first three months of 2004, then sharply rose 90 basis points coinciding co·in·cide intr.v. co·in·cid·ed, co·in·cid·ing, co·in·cides 1. To occupy the same relative position or the same area in space. 2. To happen at the same time or during the same period. 3. with a pickup Pickup A gain in yield made by selling one bond and buying another. Also referred to as "yield pickup." Notes: When the present yield is relatively low compared to the longer-term yields, pickups will be done by investors trying to increase the yield and duration of their in the core consumer price index and strong job growth for several months. The CPI (1) (Characters Per Inch) The measurement of the density of characters per inch on tape or paper. A printer's CPI button switches character pitch. (2) (Counts Per I and job growth then moderated and the 10year Treasury rate declined during the second half of 2004, even as the Federal Reserve's Open Market Committee raised the overnight Federal funds rate Federal Funds Rate The interest rate at which a depository institution lends immediately available funds (balances at the Federal Reserve) to another depository institution overnight. at every meeting from June June: see month. through December December: see month. . As a result, the 10-year Treasury rate ended the year at about the same level as it began the year. Despite this varied economic environment, the total assets of the top 25 U.S. life insurance companies continued to grow at a healthy 12% for the second straight year. Total industry assets grew by approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 10% in 2004. Separate-account assets rose 14% in 2004 to more than $1.35 trillion One thousand times one billion, which is 1, followed by 12 zeros, or 10 to the 12th power. See space/time. (mathematics) trillion - In Britain, France, and Germany, 10^18 or a million cubed. In the USA and Canada, 10^12. . The equity markets fluctuated within a relatively narrow range for the first eight months of the year, and then increased during the last four months.
Asset Distribution, Top Life Writers, United States--2004
Rank is based on total assets for 2004.
($ Millions)
% Of
Rank Group Name AMB# Bonds Assets
1 AIG Life Group 70342 $200,561 61.3
2 Metropolitan Life & 70192 149,408 48.5
Affiliated Cos
3 Prudential of America Group 70189 111,076 39.3
4 Hartford Life Group 70116 34,489 17.9
5 Aegon USA Inc 69707 91,912 54.3
6 TIAA Group 70362 117,504 70.5
7 Manulife Finl 69542 55,166 33.7
8 ING USA Life Group 70153 67,040 42.1
9 NY Life Group 69714 88,177 56.6
10 Northwestern Mutual Group 69515 60,930 49.2
11 Axa Finl Group 70194 35,248 28.6
12 MassMutual Finl Group 69702 42,131 38.9
13 Nationwide Life Group 70350 28,695 26.9
14 Principal Life Ins Co 06150 36,735 36.2
15 Citigroup 70128 42,122 44.9
16 Lincoln Natl Corp 70351 33,054 36.1
17 Allstate Finl 70106 49,058 58.4
18 Pacific Life Group 69720 24,634 35.4
19 Amer Express Finl Corp 69689 27,052 41.4
20 Genworth Finl Group 69555 42,445 68.0
21 Cigna Group 70173 10,624 18.7
22 Jackson Natl Group 69578 36,794 65.9
23 Sun Life Finl Group 69740 21,785 40.3
24 Aflac Inc Group 69824 36,278 73.5
25 Thrivent Finl for Lutherans 06008 28,647 58.1
Total Top 25 $1,471,564 45.7
Total US Life/Health & $2,105,660 49.6
Fraternal
% of Separate
Rank Group Name Mortgages Assets Accounts
1 AIG Life Group $12,113 3.7 $70,199
2 Metropolitan Life & 31,445 10.2 89,002
Affiliated Cos
3 Prudential of America Group 19,078 6.8 122,143
4 Hartford Life Group 642 0.3 148,884
5 Aegon USA Inc 14,027 8.3 50,265
6 TIAA Group 24,469 14.7 8,665
7 Manulife Finl 13,381 8.2 76,493
8 ING USA Life Group 10,855 6.8 71,379
9 NY Life Group 10,737 6.9 19,241
10 Northwestern Mutual Group 17,240 13.9 14,318
11 Axa Finl Group 4,915 4.0 67,909
12 MassMutual Finl Group 9,663 8.9 37,102
13 Nationwide Life Group 9,090 8.5 65,418
14 Principal Life Ins Co 8,740 8.6 50,485
15 Citigroup 2,061 2.2 36,335
16 Lincoln Natl Corp 3,801 4.1 48,909
17 Allstate Finl 6,357 7.6 23,565
18 Pacific Life Group 3,335 4.8 32,101
19 Amer Express Finl Corp 2,965 4.5 32,765
20 Genworth Finl Group 6,042 9.7 9,318
21 Cigna Group 3,457 6.1 36,685
22 Jackson Natl Group 4,670 8.4 10,354
23 Sun Life Finl Group 2,804 5.2 22,735
24 Aflac Inc Group 2 0.0 0
25 Thrivent Finl for Lutherans 5,763 11.7 7,713
Total Top 25 $227,654 7.1 $1,151,986
Total US Life/Health & $273,133 6.4 $1,350,043
Fraternal
% of Total
Rank Group Name Assets Assets
1 AIG Life Group 21.5 $327,018
2 Metropolitan Life & 28.9 307,847
Affiliated Cos
3 Prudential of America Group 43.2 282,557
4 Hartford Life Group 77.2 192,789
5 Aegon USA Inc 29.7 169,309
6 TIAA Group 5.2 166,640
7 Manulife Finl 46.8 163,559
8 ING USA Life Group 44.8 159,354
9 NY Life Group 12.4 155,666
10 Northwestern Mutual Group 11.6 123,966
11 Axa Finl Group 55.1 123,165
12 MassMutual Finl Group 34.3 108,267
13 Nationwide Life Group 61.4 106,481
14 Principal Life Ins Co 49.7 101,496
15 Citigroup 38.7 93,834
16 Lincoln Natl Corp 53.4 91,658
17 Allstate Finl 28.0 84,026
18 Pacific Life Group 46.2 69,508
19 Amer Express Finl Corp 50.1 65,420
20 Genworth Finl Group 14.9 62,395
21 Cigna Group 64.6 56,799
22 Jackson Natl Group 18.6 55,796
23 Sun Life Finl Group 42.1 54,018
24 Aflac Inc Group 0.0 49,379
25 Thrivent Finl for Lutherans 15.6 49,324
Total Top 25 35.8 $3,220,272
Total US Life/Health & 31.8 $4,241,826
Fraternal
Net Yield on Invested
Assets Before Federal
Income Tax, if Any
Rank Group Name 2004 2003 2002 2001 2000
1 AIG Life Group 5.5 6.0 6.5 7.0 6.9
2 Metropolitan Life & 5.6 5.8 6.7 7.4 7.5
Affiliated Cos
3 Prudential of America Group 5.6 5.8 5.9 6.0 6.5
4 Hartford Life Group 5.7 6.2 6.4 7.4 7.0
5 Aegon USA Inc 5.3 5.6 6.1 7.2 7.4
6 TIAA Group 6.4 6.9 7.3 7.6 7.9
7 Manulife Finl 6.4 6.7 7.0 7.7 8.0
8 ING USA Life Group 5.3 5.6 6.4 7.0 7.2
9 NY Life Group 5.8 6.0 6.3 7.3 7.3
10 Northwestern Mutual Group 6.1 6.3 6.5 7.1 7.3
11 Axa Finl Group 6.2 6.7 7.2 7.5 11.3
12 MassMutual Finl Group 6.2 6.5 7.1 7.6 7.6
13 Nationwide Life Group 5.5 5.9 6.6 7.3 7.5
14 Principal Life Ins Co 6.6 7.0 7.4 8.0 7.9
15 Citigroup 6.0 5.7 6.6 7.0 7.7
16 Lincoln Natl Corp 5.9 6.3 6.6 6.9 7.0
17 Allstate Finl 5.8 6.3 6.6 7.2 7.4
18 Pacific Life Group 7.5 6.8 7.9 7.3 7.6
19 Amer Express Finl Corp 5.6 5.2 5.5 5.8 7.2
20 Genworth Finl Group 4.4 5.6 6.1 6.8 7.3
21 Cigna Group 5.5 7.1 7.3 7.8 7.8
22 Jackson Natl Group 5.4 5.7 6.0 6.5 7.2
23 Sun Life Finl Group 5.1 5.0 5.4 6.3 7.0
24 Aflac Inc Group 4.5 4.8 5.0 5.2 5.3
25 Thrivent Finl for Lutherans 5.4 5.7 6.2 6.7 6.9
Total Top 25 5.7 6.1 6.5 7.1 7.4
Total US Life/Health & 5.8 6.1 6.6 7.0 7.3
Fraternal
Source: A.M. Best Co. data.
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