Life Insurance and Health Insurance
According to Plunkett Research, life insurance in the United States was a $517 billion business (in gross premiums) in 2005, while life and health insurers earned about $34 billion in net investment income in that year.
Plunkett Research notes that the biggest challenges currently facing the insurance industry lie in the health coverage sector, where soaring costs and a rapidly aging U.S. population make it extremely difficult for insurers to forecast future costs and appropriately price their products. Meanwhile, health coverage underwriters face growing demand from patients for more choices of providers and treatments.
Life and health insurance industry operating data, 2003-2005
|
$ billions |
2003 |
2004 |
2005 |
|
Premiums and annuity considerations (1) |
500.2 |
531.2 |
518.5 |
|
Net investment income |
142.9 |
145.5 |
149.0 |
|
Net gain from operations (2) |
39.1 |
41.1 |
40.2 |
|
Federal and foreign income taxes (3) |
7.9 |
10.0 |
9.0 |
|
Net realized capital gains/losses |
-4.7 |
1.0 |
3.2 |
|
Net income |
26.6 |
32.2 |
34.3 |
|
Dividends to stockholders |
-11.0 |
-13.0 |
-21.7 |
|
Capital and surplus (end of year) |
223.8 |
237.0 |
239.7 |
(1) Life and accident and health policies and contracts.
(2) After dividends to policyholders and before federal income taxes.
(3) Incurred (excluding tax on capital gain).
Source: plunkettresearch.com, iii.org
