Capital and surplus, including the asset valuation reserve, continued to experience modest improvement, resulting in a 9% increase to $338.9 billion from year-end 2009. An after-tax net operating gain of $26.0 billion was recorded, approximately 31% below the prior year period. The top 25 writers (ranked by nine-month 2010 admitted assets) accounted for the following percentages of key financial results for the U.S. life/health industry: admitted assets (78.2%); separate account assets (88.6%); net premiums written (67.0%); after-tax net operating gain (67.8%); realized capital losses (72.0%); and capital and surplus plus the asset valuation reserve (66.9%).
“The U.S. life/health industry continues to recover from the economic crisis with improvement in a majority of the key financial results reviewed in the statistical study. It will be interesting to track the progress in net premiums written relative to challenges posed by (but not limited to) high unemployment, modest U.S. economic growth and continued uncertainty,” said Richard F. Kirk , senior business information analyst for A.M. Best’s Financial Suite products.
These results are included in an in-depth study of the insurance industry’s 2010 nine-month financial results, available to subscribers of Best's Statement File – Life/Health – US database. This product is part of A.M. Best’s Financial Suite. The U.S. property/casualty industry study is expected to be released shortly.