Conning Research Projects Increased Operating Gains and Continued Surplus Growth For the Life Insurance Industry through 2009

Hartford, CT, November 12, 2007 – Conning Research and Consulting has released its latest forecast for the life-health insurance industry. This edition forecasts the life-health industry financial results for 2007 through 2009.

“Analysis of 2006 results for the life insurance industry shows statutory net operating gains of $27.4 billion, down $5.4 billion from the record 2005 results. Separately, our GAAP estimate for 2006 results indicates net operating income of $61.4 billion,” said Stephan Christiansen, director of research at Conning Research & Consulting. “We forecast statutory net operating gain increases for the period 2007 through 2009, despite the single-year drop in 2006, as individual life sales improve and group annuities stabilize.”

The semi-annual Conning Research report, Life-Health Forecast & Analysis by Line of Business, 2007-2009 reports on 2006 final results for the industry and forecasts results for the life-health insurance industry and its top lines of business through 2009 on a statutory basis. The report also includes an estimated industry GAAP income and balance sheet for 2001 through 2006.

“Overall, the industry should continue to sustain historically strong margins, even in the face of lower investment returns and the need to support a growing capital base,” said Terence Martin, senior analyst at Conning Research. “The insurance and annuity lines are undergoing fundamental product shifts toward equity based variable products, and the industry appears to be managing this change well. We anticipate that greater emphasis on these variable equity products will result in net premium compound annual growth of 7.3 percent through 2009.”

Life-Health Forecast & Analysis by Line of Business, 2007-2009 is available for purchase from Conning Research & Consulting, by calling (888) 707-1177 or by visiting the company’s web site at

About Conning Research & Consulting, Inc.

Conning provides insurance industry analysis to insurers and industry stakeholders. The Conning name has represented excellence in independent insurance industry research for 50 years. As a result of its wealth of experience and intimate knowledge of the insurance industry, Conning understands industry challenges and opportunities and provides in-depth insights and analyses on a wide range of industry products and issues. Conning is headquartered in Hartford, CT.

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