Life insurers' assets hold steady with slight increase in bonds.Although asset distribution for the life insurance industry in total did not change significantly in 2005, there are some notable differences among individual companies/groups. For the industry as a whole, admitted assets continued growing by more than 5%, with total admitted assets rising to a record level of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $4.5 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. in 2005. On an absolute dollar basis, every asset category increased in 2005 over 2004, although at slightly reduced growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. . The top 50 insurance groups reported a marginally mar·gin·al adj. 1. Of, relating to, located at, or constituting a margin, a border, or an edge: the marginal strip of beach; a marginal issue that had no bearing on the election results. 2. higher growth rate than the industry in total. The difference in growth between the largest companies and the total industry is primarily the result of separate accounts, which grew by more than 9% in 2005, while all other asset classes grew by less than 4%. Nearly half of the life and health industry's total admitted assets are fixed-income securities Fixed-income securities Investments that have specific interest rates, such as bonds. . Overall, the dispersion dispersion, in chemistry dispersion, in chemistry, mixture in which fine particles of one substance are scattered throughout another substance. A dispersion is classed as a suspension, colloid, or solution. of companies' stock, mortgage, real estate, and 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. assets is fairly narrow. The industry's general trend during this period has been to improve the quality of its bond portfolio. Companies have decreased their below-investment-grade portfolio, and defaults have been minimal in recent years. Asset distribution continues to reflect shortened short·en v. short·ened, short·en·ing, short·ens v.tr. 1. To make short or shorter. 2. durations and a reasonable level of 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. For 2005, the industry's overall asset-allocation mix remained steady, with a slight percentage increase in bonds and a decrease in cash and short-term assets, while other, alternative classes remained largely unchanged from 2004.
Asset Distribution, Top Life Writers, United States--2005
Rank is based on total assets for 2005.
($ Millions)
Rank Group Name AMB# Bonds
1 Metropolitan Life & Affiliated Cos 70192 $192,476
2 AIG Life Group 70342 208,423
3 Prudential of America Group 70189 119,654
4 Hartford Life Group 70116 36,940
5 Manulife Finl 69542 56,230
6 TIAA Group 70362 124,556
7 Aegon USA Inc 69707 90,516
8 ING USA Life Group 70153 71,292
9 NY Life Group 69714 96,257
10 Axa Finl Group 70194 36,135
11 Northwestern Mutual Group 69515 65,898
12 MassMutual Finl Group 69702 41,153
13 Principal Life Ins Co 06150 38,395
14 Nationwide Life Group 70350 28,490
15 Lincoln Natl Corp 70351 32,941
16 Allstate Finl 70106 52,266
17 Pacific Life Group 69720 24,823
18 Ameriprise Finl Group 69689 27,495
19 Genworth Finl Group 69555 42,766
20 Jackson Natl Group 69578 39,126
21 Sun Life Finl Group 69740 22,004
22 Allianz Ins Group 70187 32,749
23 Thrivent Finl for Lutherans 06008 29,157
24 Aflac Inc Group 69824 39,646
25 State Farm Life Group 70126 29,067
Total Top 25 $1,578,454
Total U.S. Life/Health & Fraternal $2,204,771
% of % of Separate % of
Rank Assets Mortgages Assets Accounts Assets
1 47.2 $34,869 8.6 $134,342 32.9
2 61.1 13,106 3.8 75,073 22.0
3 36.2 18,899 5.7 163,131 49.3
4 18.1 1,148 0.6 159,180 77.8
5 31.4 12,762 7.1 89,304 49.9
6 70.0 24,489 13.8 12,073 6.8
7 52.5 14,893 8.6 53,761 31.2
8 42.0 10,418 6.1 78,787 46.4
9 57.9 11,276 6.8 20,720 12.5
10 27.1 4,705 3.5 75,951 57.0
11 49.5 18,118 13.6 15,753 11.8
12 36.2 9,523 8.4 40,227 35.4
13 34.4 8,455 7.6 57,828 51.8
14 26.4 8,830 8.2 67,599 62.7
15 32.8 3,614 3.6 57,237 57.0
16 59.2 6,873 7.8 24,583 27.9
17 32.6 3,982 5.2 38,072 50.1
18 38.9 2,880 4.1 38,199 54.1
19 66.5 7,487 11.6 9,661 15.0
20 62.2 5,033 8.0 14,721 23.4
21 39.4 3,370 6.0 23,402 41.9
22 60.8 2,148 4.0 16,447 30.5
23 57.4 6,444 12.7 8,718 17.2
24 84.4 2 0.0 0 0.0
25 70.4 4,605 11.2 1,363 3.3
45.6 $237,932 6.9 $1,276,132 36.9
49.3 $284,652 6.4 $1,476,009 33.0
Net Yield on Invested
Assets Before Federal
Income Tax, if Any
Total
Rank Assets 2005 2004 2003 2002 2001
1 $407,780 5.7 5.8 5.8 6.7 7.1
2 340,993 5.3 5.5 6.0 6.5 7.0
3 330,973 5.4 5.6 5.8 5.9 6.0
4 204,500 5.6 5.7 6.2 6.4 7.4
5 179,071 6.8 6.4 6.7 7.0 7.7
6 177,927 6.5 6.4 6.9 7.3 7.6
7 172,495 5.5 5.3 5.6 6.1 7.2
8 169,892 5.1 5.3 5.5 6.4 6.9
9 166,151 5.7 5.8 6.0 6.3 7.3
10 133,172 6.5 6.2 6.7 7.2 7.5
11 133,068 6.0 6.1 6.3 6.5 7.1
12 113,586 6.3 6.2 6.5 7.1 7.6
13 111,739 6.2 6.6 7.0 7.4 8.0
14 107,743 5.7 5.5 5.9 6.6 7.3
15 100,387 5.8 5.9 6.3 6.6 6.9
16 88,241 5.8 5.8 6.3 6.6 7.2
17 76,032 6.1 7.5 6.8 7.9 7.3
18 70,594 5.6 5.6 5.2 5.5 5.8
19 64,305 5.9 4.5 5.7 6.1 6.8
20 62,906 5.9 5.5 5.7 6.1 6.5
21 55,827 4.9 5.0 5.0 5.4 6.3
22 53,881 5.4 5.6 5.8 5.7 6.5
23 50,816 5.3 5.4 5.7 6.2 6.7
24 46,987 4.4 4.5 4.8 5.0 5.2
25 41,263 5.9 6.1 6.6 7.0 7.2
$3,460,329 5.7 5.7 6.1 6.5 7.1
$4,471,309 5.8 5.8 6.1 6.6 7.0
Source: A.M. Best Co. data.
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