The 2019 Life-Annuity Industry Was Treading Water: A Review of Performance and Challenges – ResearchAndMarkets.com – Business Wire
DUBLIN–(BUSINESS WIRE)–The “2019: Life-Annuity Industry Expenses Treading Water” report from Conning & Company has been added to ResearchAndMarkets.com’s offering.
Life-annuity companies have found challenges in boosting profitability by increasing sales.
With respect to life insurance, sluggish sales have been the order of the day, and both annuities and life insurance have been hit with increasing reserve requirements in a low interest rate environment.
Claims experience for life insurance has been worse than expected, and net flows on annuities have been challenging profitability. It can be difficult to control sales, benefit levels, and other income sheet items, but one item has often been looked at to boost profitability: expenses.
In this study, the publisher explores life insurance and annuity expenses, analyzes how much “economies of scale” and product mix influence a company’s efficiency, and whether low expense ratios lead to higher profitability in the current economic environment. By choosing appropriate peer groups, by size or business focus, insurers can evaluate their own expense trends against the industry.
The analysis is based on results from 2008 to 2017, focusing on life-annuity insurers and their expenses in life products, both group and individual lines. The study is organized into three main sections.
The first section, chapter three, provides a high-level view of expense trends for the life-annuity industry and looks at whether low expense companies have a profitability or growth advantage.
The second section, chapters four and five, provide a detailed look at expense categories, split into selling and non-selling expenses.
The third section, chapters six, seven, and eight, provide expense trend profiles based on insurer size, as size is the preeminent determinant of overall expense levels.
While the study does cover trends from 2008 to 2017, there is a special focus on trends covering 2013-2017, especially with respect to how expense levels in those years have affected financial results.
Key Topics Covered:
Total Expenses for the Life-Annuity Industry
Key Findings
Life-Annuity Expenses: A Lever for Reducing Costs
Expenses and Financial Results for the Life-Annuity Industry
Overall Industry Life Expenses
Expense Trends by Size
Expense Trends by Ownership Structure
Low Expense Companies
Selling Expenses
Key Findings
Total Selling Expense Trends
Selling Expense Subcategories
Correlation Between Selling Expenses and Premium Growth
Summary
Non-Selling Expenses
Key Findings
Total Non-Selling Expense Trends
People Expenses Category
Overhead Expenses Category
IT Expenses Category
Investment Expenses Category
Non-Selling Expenses for Low Expense Groups and Remaining Industry
Large Insurers
Overall Life Expenses for Large Insurers
Selling Expenses
Non-Selling Expenses
Midsized Insurers
Overall Life Expenses for Midsized Insurers
Selling Expenses
Non-Selling Expenses
Small Insurers
Overall Life Expenses for Small Insurers
Selling Expenses
Non-Selling Expenses
Companies Mentioned
Aegon
Aetna
AFLAC
AIG
Allianz
Allstate
American Equity
America Financial
American National
OmeAmerica Financial
Ameriprise
Ameritas
Athene Holding
AXA
Berkshire Hathaway
CNO Financial
Cigna
CUNA Mutual
Brighthouse
Jackson National
Guardian Life Fidelity
For more information about this report visit https://www.researchandmarkets.com/r/1c67yn
Source: Conning & Company
