Life Insurance & Annuities in the US - Market Research Report (2013-2028)
New York, United States
Last Updated: November 2023
NAICS 52411aRevenue
$1.1tr
Past 5-Year Growth
Profit
$XXX.Xbn
Employees
333k
Businesses
686
Wages
$XX.Xbn
Life Insurance & Annuities in the US industry analysis
According to the Federal Reserve and the American Council of Life Insurers, the Life Insurance and Annuities industry is one of the largest sources of investment capital in the United States. Holding 20.0% of all US corporate bonds, industry operators represent domestic businesses' largest source of bond financing. Many companies rely on life insurers for capital and liquidity. The primary obligation of life insurers is to their policyholders; consumers use life insurance policies and annuities products for wealth preservation, estate planning and retirement savings. Industry operators provide these services to both individuals and businesses in various policy types.
Trends and Insights
- The Federal Reserve is increasing interest rates to curb inflation. The higher rates will increase investment income for life insurers.
- Annuities and life insurance policies are the most relevant products offered to clients on the market. These policies appeal to a diversified client base across the United States.
- Business locations largely mirror the geographic spread of the population. More populated states tend to have more establishments than their less populous counterparts.
- Concentration is dependent on company structures. It is easier for there to be concentration within a type of operator structure, but not so much across the entire industry.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has grown at a CAGR of 1.4 % over the past five years, to reach an estimated $1.1tr in 2023.
Trends and Insights
The monetary response to the COVID-19 pandemic
- At the onset of the pandemic in early 2020, financial markets went into turmoil. Both the equities and bond markets reacted negatively to the spread of the virus. On one hand, investors sold their equities, causing the S&P 500 to plummet. On the other hand, the entire world was facing a liquidity crisis, as demand for the dollar increased exuberantly.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Changing demographic and macroeconomics trends
- Younger generations haven't significantly added to life insurance and annuity demand as of yet. A big part due to higher indebtedness, lower net wealth and lower real incomes of millennials relative to their baby boomer forebears, who are the wealthiest generation in history.
Biggest companies in the Life Insurance & Annuities in the US
| Company | Market Share (%)
2023 | Revenue ($m)
2023 | Profit ($m)
2023 | Profit Margin (%)
2023 |
|---|---|---|---|---|
New York Life Insurance Co | 8,624.7 | 1,483.4 | 17.2 | |
Northwestern Mutual Life Insurance Co | 3,750.4 | 774.2 | 20.6 | |
Massachusetts Mutual Life Insurance Co | 3,465.3 | 114.9 | 3.3 |
To view the market share and analysis for all 7 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Individual annuities, Group annuities and Individual life insurance premiums. Individual annuities is the largest segment of the Life Insurance & Annuities in the US.
Trends and Insights
Individual annuities are the most popular type of annuities and are puchased directly by consumers.
- Annuities protect their owners against the possibility of outliving their financial resources during retirement. Immediate annuities begin making policy payments directly after being purchased, while deferred annuities delay payments until a later date, such as retirement. During the deferment period, the annuity owner often makes periodic premium payments to help grow the annuity to its maximum level before payout.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Health & Welfare Funds in the US
- Disability Insurance in the US
- Long Term Care Insurance in the US
Complementors
- Health & Medical Insurance in the US
- Reinsurance Carriers in the US
- Workers' Compensation & Other Insurance Funds in the US
International industries
- Global Life & Health Insurance Carriers
- Life Insurance & Annuities in Canada
- Life Insurance in Australia
- Life Insurance in New Zealand
- Life Insurance in the UK
Table of Contents
About this industry
Industry definition
Operators within this industry are primarily engaged in accepting liability under annuities and life, disability income and accidental death and dismemberment insurance policies. Enterprises within this industry include fraternal organizations, privately held insurers, publicly traded insurers and mutual insurance companies.
What's included in this industry?
Underwriting variable deferred annuitiesUnderwriting fixed rate deferred annuitiesUnderwriting individual whole life policiesUnderwriting group life policiesUnderwriting individual universal life policiesUnderwriting immediate annuitiesUnderwriting individual term life policiesInvesting insurance premiumsCompanies
New York Life Insurance CoNorthwestern Mutual Life Insurance CoMassachusetts Mutual Life Insurance CoPurchase this report to view all 7 major companies in this industry.
Related Terms
FIXED ANNUITYPOLICIES IN FORCEPERMANENT LIFE INSURANCETERM LIFE INSURANCEVARIABLE ANNUITYVARIABLE LIFE INSURANCEWHOLE LIFE INSURANCEIndustry Code
NAICS 524113 - Life Insurance & Annuities in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
The Federal Reserve is increasing interest rates to curb inflation. The higher rates will increase investment income for life insurers.
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Annuities and life insurance policies are the most relevant products offered to clients on the market. These policies appeal to a diversified client base across the United St...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Business locations largely mirror the geographic spread of the population. More populated states tend to have more establishments than their less populous counterparts.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each state in 2023
- Number and share of revenue each state accounts for in 2023
- Number and share of wages each state accounts for in 2023
- Number and share of employees in each state in 2023
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Concentration is dependent on company structures. It is easier for there to be concentration within a type of operator structure, but not so much across the entire industry.
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Major companies are adapting to higher interest rates and less liquidity. After nearly 15 years of quantities easing, the Federal Reserve is reducing its balance sheet to hel...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of New York Life Insurance Co's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Northwestern Mutual Life Insurance Co's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Massachusetts Mutual Life Insurance Co's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of revenue, market share and profit margin trend for 4 additional companies
Detailed analysis
- Description and key data for New York Life Insurance Co, and factors influencing its performance in the industry
- Description and key data for Northwestern Mutual Life Insurance Co, and factors influencing its performance in the industry
- Description and key data for Massachusetts Mutual Life Insurance Co, and factors influencing its performance in the industry
- Description, key data and performance trends for 4 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Regulation is still heavily influenced by both the Great Depression and Great Recession. The government wants to ensure economic crises don’t arise again.
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Profit is dependent on the state of financial markets and the number of policies issued. The post-COVID stock market boom benefited industry profit.
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Industry Multiples (2016-2021)
- Industry Tax Structure (2016-2021)
- Income Statement (2016-2021)
- Balance Sheet (2016-2021)
- Liquidity Ratios (2016-2021)
- Coverage Ratios (2016-2021)
- Leverage Ratios (2016-2021)
- Operating Ratios (2016-2021)
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Life Insurance & Annuities in the US industry in United States in 2024?
The market size of the Life Insurance & Annuities in the US industry in United States is $1.1tr in 2024.
How many businesses are there in the Life Insurance & Annuities in the US industry in 2023?
There are 686 businesses in the Life Insurance & Annuities in the US industry in United States, which has grown at a CAGR of 2.0 % between 2018 and 2023.
Has the Life Insurance & Annuities in the US industry in United States grown or declined over the past 5 years?
The market size of the Life Insurance & Annuities in the US industry in United States has been growing at a CAGR of 1.4 % between 2018 and 2023.
What is the forecast growth of the Life Insurance & Annuities in the US industry in United States over the next 5 years?
Over the next five years, the Life Insurance & Annuities in the US industry in United States is expected to grow.
What are the biggest companies in the Life Insurance & Annuities in the US market in United States?
The biggest companies operating in the Life Insurance & Annuities market in United States are New York Life Insurance Co, Northwestern Mutual Life Insurance Co and Massachusetts Mutual Life Insurance Co
What does the Life Insurance & Annuities in the US in United States include?
Underwriting variable deferred annuities and Underwriting fixed rate deferred annuities are part of the Life Insurance & Annuities in the US industry.
Which companies have the highest market share in the Life Insurance & Annuities in the US in United States?
The company holding the most market share in United States is New York Life Insurance Co.
How competitive is the Life Insurance & Annuities in the US industry in United States?
The level of competition is high and steady in the Life Insurance & Annuities in the US industry in United States.
