Best’s Special Report: U.S. Life/Annuity Industry Records 13.8% Net Income Increase in Nine-Month 2025 Period

DECEMBER 12, 2025 09:42 AM (EST)

Best's Special Report: U.S. Life/Annuity Industry Records 13.8% Net Income Increase in Nine-Month 2025 Period

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FOR IMMEDIATE RELEASE

OLDWICK - DECEMBER 12, 2025 09:42 AM (EST)
The U.S. life/annuity industry reported a 13.8% increase in net income during the first nine months of 2025 compared with the same prior-year period, driven in part by an 8.1% increase in net investment income, according to a new AM Best report.

This financial review is detailed in a new Best's Special Report, "First Look: Nine-Month 2025 Life/Annuity Financial Results," and the data is derived from companies' nine-month 2025 interim statutory statements that were received as of Dec. 4, representing an estimated 96% of total U.S. life/annuity industry premiums and annuity considerations.

According to the report, the U.S. life/annuity industry's total income increased 17.2% from the prior-year period, driven by a $130.4 billion increase in other income. In addition to higher net investment income, the increase in total income was also largely attributable to a combined $84.5 billion increase of reserve adjustments on reinsurance ceded at American General Life Ins Co. and Athene Annuity and Life Co.

A pretax net operating gain of $33.6 billion marked a 15.9% increase from the prior-year period. A 17.2% reduction in taxes was offset by an increase in realized capital losses resulting in net income of $23.7 billion, up 13.8% from the same period in 2024.

Capital and surplus increased 3.6% from the end of 2024 to $525.3 billion, as a combined $48 billion of net income, change in unrealized gains, contributed capital, and other changes in surplus was reduced by $29.8 billion, consisting of a change in asset valuation reserve and stockholder dividends. Investment allocation to the mortgage loan asset class continues to grow and now constitutes 13.8% of total invested assets.

To access the full copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=360910.