Best’s Special Report: U.S. Life/Annuity Industry Sees Bottom-Line Growth Despite 18% Decline in Total Income in First-Quarter 2026

JUNE 16, 2026 08:45 AM (EDT)

Best's Special Report: U.S. Life/Annuity Industry Sees Bottom-Line Growth Despite 18% Decline in Total Income in First-Quarter 2026

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OLDWICK - JUNE 16, 2026 08:45 AM (EDT)
The U.S. life/annuity industry saw its total income decrease 18% in the first three months of 2026 from the prior-year period as premiums and annuity considerations fell by $36 billion, according to preliminary financial results. This financial review is detailed in a new AM Best report, "First Look: Three-Month 2026 US Life/Annuity Financial Results," and the data is derived from companies' three-month interim statutory statements that were received as of June 9, representing an estimated 94% of total industry premiums and annuity considerations.

According to the Best's Special Report, the drop in premiums and annuity considerations was predominantly due to a $24.2 billion reduction at Voya Retirement Insurance & Annuity Co. Other income also declined by 67%, driven by a $20.6 billion reduction of reserve adjustments on reinsurance ceded at American United Life Insurance Company. Total expenses for the industry decreased 19%; the resulting pretax net operating gain of $15.9 billion was nearly 10% over the prior-year period. A 33.6% reduction in taxes was offset by a slight increase in realized capital losses, resulting in net income of $12.8 billion, up 16% from the same period in 2025.

To access the full copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=365695.