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LIFE/HEALTH INSURANCE INDUSTRY INCOME ANALYSIS, 2006-2010

($ billions, end of year)

Income statement 2006 2007 2008 2009 2010 Percent change,  2009- 2010 (1)
Premiums, consideration and deposits            
     Life insurance $145.1 $138.3 $142.8 $120.5 $101.7 -15.6%
     Annuities 298.5 310.4 323.0 225.4 286.3 27.0
     Accident and health 131.9 143.5 156.6 162.4 171.5 5.6
     Credit life and credit accident and health 2.1 2.2 2.1 1.6 1.6 -2.0
     Supplementary contracts and other premiums, consideration and deposits  -0.9 16.8 0.8 0.5 23.1 4,166.0
Total premiums, consideration and deposits  $576.6 $611.2 $625.2 $510.4 $582.6 14.1%
Net investment income earned 161.5 168.0 162.2 156.6 164.0 4.7
Reserve adjustments: reinsurance ceded -4.7 -22.4 17.8 61.5 -29.3 -147.6
Fee income: investment management and separate account contracts   20.2 22.9 21.2 20.4 23.4 14.7
Other income   32.0 35.3 18.3 27.8 33.8 21.8
Total revenue   $785.6 $815.1 $844.7 $776.7 $774.5 -0.3%
Benefits 214.2 228.3 240.2 244.1 248.1 1.6
Surrenders 272.0 305.2 291.6 228.7 216.7 -5.2
Increase in reserves and deposits 69.8 35.3 144.2 99.0 96.2 -2.9
Commissions 49.7 50.7 51.7 48.9 49.2 0.6
General and administrative expense 49.3 52.1 53.6 54.2 56.9 4.9
Net transfers to separate accounts 61.0 66.1 22.7 11.1 29.3 163.6
Policyholder dividends 16.5 17.5 17.7 15.0 15.0 (2)
Income tax 11.0 11.5 -0.1 10.7 9.0 -16.0
Net realized capital gains (losses) 6.5 -1.5 -50.9 -28.7 -16.0 44.3
Net income 37.0 31.6 -52.3 21.5 28.1 30.5
Pre-tax operating income 41.4 44.6 -1.4 61.0 53.1 -12.9

(1) Calculated from unrounded data.
(2) Less than 0.1 percent.

Source: SNL Financial LC.