The life insurance industry is still working through capital losses and capital constraints resulting from the 2008 financial crisis with some success, according to a new study by Conning Research and Consulting, Hartford, Conn.

"We project net after-tax statutory income of $16 billion for 2009—less than half the pre-crisis figure of 2007—despite capital losses of $20 billion in the year," said Terence Martin, analyst at Conning Research & Consulting. "Even with a $16 billion capital infusion in 2009, the industry is still well below pre-crisis 2007 levels, and capital leverage ratios have risen dramatically. The industry will continue to face capital constraints in the short term, even as capital losses abate."

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