The life-annuity industry will continue to struggle for a while to recover from the financial crisis of 2008 and the loss of assets and surplus, according to a new report.
Preliminary results show the life insurance industry had a statutory net loss of $51 billion in 2008 and that surplus plus asset valuation reserves at the end of the year fell 13% to $273 billion, said Terence Martin, analyst at Conning Research & Consulting, Hartford.
In its report, "Life-Annuity Forecast & Analysis: Midyear 2009," Conning forecasts a recovery for the life-annuity industry but says it believes the industry will continue to suffer capital losses at least through 2009.
