US Life Quarterly July 2019

A strong 6.0% increase in direct premiums written (DPW) by the life and health industry masks a divergence in life and annuity business in 2018. While annuity premiums accelerated by 12% in 2018 after the DOL fiduciary rule was annulled, DPW of life products declined by 1.4%. A sharp increase in benefits and losses at same time, resulted in the life and health industry's pretax operating income falling by 27% in 2018. The Fed signaled that it may be willing to cut rates in response to a slowdown in growth introduced by trade tensions. We expect the Federal Reserve to cut rates in 3Q19 and one more time in early 2020. On the regulation front, a modified version of the DOL fiduciary rule was adopted in NY and the NAIC is working to introduce it in other states.


Insurance Monitoring US Life Quarterly July 2019

SEE ALSO FORMER Insurance Monitorings