Hartford, Conn. - The U.S. life insurance industry is projected to post operating gains in 2005 and 2006 that build on positive 2003 and 2004 results, according to Conning Research and Consulting Inc. Hartford, Conn.
The industry's operating gain for 2004 was $6.5 billion greater than the 2003 gain, which was itself a record, according to Conning's newly released report, "Life-Health Forecast & Analysis by Line of Business." The report notes projected operating gains for 2005 and 2006, while slightly less than 2004, are likely to keep the industry on solid financial ground.
"The combination of revenue increasing at nearly twice the rate of benefits and improved expense control has led to 2004 statutory net operating gains of $37.8 billion, which eclipsed 2003 record operating gains of $31.2 billion," said Terence Martin, analyst at Conning Research & Consulting, Inc. "As a result, the industry has been able to boost overall capital substantially in the past two years. Surplus levels have risen by 10% and 9% for 2003 and 2004, respectively."
Source: Conning Research and Consulting Inc.
