Conning Research: Life Insurance Industry Projected to Continue Posting Strong Results in 2005 and 2006

Results Follow Record Operating Gains in 2004

(Hartford, CT) July 13, 2005 – The U.S. life insurance industry is projected to post operating gains in 2005 and 2006 that build on the strong results for 2003 and 2004. The operating gain for 2004 was $6.5 billion greater than the 2003 gain, which was itself a record. The projected operating gains for 2005 and 2006, while slightly less than 2004, are likely to keep the industry on solid financial ground, according to a new report by Conning Research and Consulting, Inc.

“The combination of revenue increasing at nearly twice the rate of benefits and improved expense control has letd to 2004 statutory net operating gains of $37.8 billion, which eclipsed 2003 record operating gains of $31.2 billion,” said Terence Martin, analyst at Conning Research & Consulting, Inc. “As a result, the industry has been able to boost overall capital substantially in the past two years. Surplus levels have risen by 10% and 9% for 2003 and 2004, respectively.”

The Conning Research report, “Life-Health Forecast & Analysis by Line of Business” is the latest in a semi-annual series that provides an estimate for 2004 statutory industry results and forecasts 2005 and 2006 by line of business.

“We expect the industry’s record-setting performance in 2003 and 2004 to cool somewhat in 2005 and 2006 as benefits increases exceed revenue growth,.” said Stephan Christiansen, director of research at Conning Research & Consulting. “That said, we expect that the statutory net gains in 2005 and 2006 will beat all years in the review period beginning in 1999, except 2004.”

“Life-Health Forecast & Analysis by Line of Business” is available for purchase from Conning Research & Consulting, Inc., by calling (888) 707-1177 or by visiting the company’s web site at

About Conning Research & Consulting, Inc.

The Conning name has represented excellence in independent insurance industry research for more than 90 years. As a result of its wealth of experience and intimate knowledge of the insurance industry, Conning understands industry challenges and opportunities and can provide in-depth insights and analyses. Conning provides both public and proprietary research as well as consulting services to the financial services industry. Conning is headquartered in Hartford, CT. Visit