New Statutory Data from SNL Financial Shows a Decline in Net Operating Gain for Life Insurance Companies

Weak equity markets are the culprit for significant decreases in annuity account balances and income in the third quarter of 2008.

Charlottesville, Va. (November 25, 2008) – According to an analysis of third quarter 2008 statutory data from SNL Financial, revenues from traditional life products remain golden for insurers. However, turmoil in the equity market is beginning to take its toll on the variable annuity business. companies.

SNL tabulated data from nearly 85% of expected filers, representing more than 750 individual entities. The Life industry reported a 61% decrease in net operating gain from operations, dropping to $3.9 billion in the third quarter from $9.8 billion in the year-earlier period.

While operating results for traditional life insurance products remained consistent, with premiums of $30 billion for the companies in SNL's analysis, variable annuities were harder hit by the slumping equity market. Lynn Santimauro, senior analyst at SNL noted, "Third quarter results are a baseline for what is to come. Year-end results will continue to decline. After the books closed on September 30, we continued to see worse bond and stock market conditions. The continual market downturn in the fourth quarter will put the industry's hedging strategies to the test."

SNL's statutory insurance data is available exclusively as part of SNL Unlimited for Financial Institutions. To learn more about SNL Unlimited, contact sales@snl.com or call 866.296.3743.

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