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Life Insurance & Annuities in the US - Market Research Report (2014-2029)

Brendan McErlaine Brendan McErlaine New York, United States Last Updated: December 2024 NAICS 52411a

Revenue

$1.1tr

2024

$1.1tr

Past 5-Year Growth

Profit

$XXX.Xbn

Employees

326k

Businesses

1,486

Wages

$XX.Xbn

Life Insurance & Annuities in the US industry analysis

Revenue for life insurance and annuity providers has displayed significant volatility over the past few years. COVID-19 led to a recession that slowed demand for insurance providers’ services, causing revenue to plunge in 2020. These trends reversed in 2021 and 2022 when the pandemic ended. When inflation peaked in 2022, the Federal Reserve began raising interest rates, which increased the cost of borrowing, leading to a drop in consumer demand and investment in capital. These changes have threatened GDP growth, fostering greater recessionary fears. As a result, both individuals and businesses have been less inclined to invest in life insurance and annuities, fearing future economic instability. On the flip side, the industry has also benefited from higher investment incomes due to the elevated interest rates, keeping revenue growth relatively robust.

Trends and Insights

  • Interest rate adjustments have been a mixed bag for insurance providers, offering both challenges and opportunities. Higher rates initially slowed consumer demand, but they also brought increased investment income, creating a balancing act for these companies.
  • Though once popular, individual annuities have seen a drop in popularity as consumers opt for more convenient investment options such as pooled funds. People are finding it increasingly challenging to navigate the intricacies of these products, leading to a drop in their desirability.
  • The Southeast is a powerhouse for life insurance establishments due to its booming population. With big states such as Florida, Georgia and North Carolina in the region, there's a vast market that life insurers are eager to tap into.
  • Concentration is dependent on company structures. Concentration is easier within a type of structure, but not across the entire industry.

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  • Market estimates from 2014-2029
  • Critical performance data and rankings
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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has declined at a CAGR of 0.1 % over the past five years, to reach an estimated $1.1tr in 2024.

Trends and Insights

Shifts in interest rates have been a blessing and a curse for providers

  • When inflation peaked in 2022, the Federal Reserve started raising interest rates to lower the price. The elevated cost of borrowing has hindered investment in capital structures and businesses and halted consumer demand. These factors have slowed GDP growth and threatened to put the economy into a recession.
  • Additional trends and insights available with purchase
Life Insurance & Annuities in the US
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

Biggest companies in the Life Insurance & Annuities in the US

Company
Market Share (%)
2024
Revenue ($m)
2024
Profit ($m)
2024
Profit Margin (%)
2024
Northwestern Mutual Life Insurance Co
37,354.5
9,390.4
25.1
Massachusetts Mutual Life Insurance Co
36,854.1
672.5
1.8
New York Life Insurance Co
8,624.7
1,483.4
17.2

To view the market share and analysis for all 7 top companies in this industry, view purchase options.

Products & Services Segmentation

Life Insurance & Annuities in the US
Products & Services
IBISWorld Logo 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 purchased 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

Table of Contents

About this industry

Industry definition

Companies in 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?

Individual annuitiesGroup annuitiesIndividual life insuranceGroup life insuranceInvestment incomeDisability insuranceCredit life insuranceIndustrial life insurance

Companies

Northwestern Mutual Life Insurance CoMassachusetts Mutual Life Insurance CoNew York Life Insurance Co

Purchase 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 INSURANCE

Industry Code

NAICS 2017

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

Interest rate adjustments have been a mixed bag for insurance providers, offering both challenges and opportunities. Higher rates initially slowed consumer demand, but they a...

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 (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • 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

Though once popular, individual annuities have seen a drop in popularity as consumers opt for more convenient investment options such as pooled funds. People are finding it i...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024

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

The Southeast is a powerhouse for life insurance establishments due to its booming population. With big states such as Florida, Georgia and North Carolina in the region, ther...

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 2024

Tables

  • Number and share of establishments in each state in 2024
  • Number and share of revenue each state accounts for in 2024
  • Number and share of wages each state accounts for in 2024
  • Number and share of employees in each state in 2024

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. Concentration is easier within a type of structure, but not 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 2019-2024
  • 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

New York Life made a significant move in 2020 by acquiring Cigna's group life, accident and disability insurance business for $6.3 billion. This acquisition not only expanded...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024
  • Overview of Northwestern Mutual Life Insurance Co's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Massachusetts Mutual Life Insurance Co's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of New York Life Insurance Co's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of revenue, market share and profit margin trend for 4 additional companies

Detailed analysis

  • 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 and key data for New York 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 the Great Depression and the Great Recession. The government wants to ensure that 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 (2014-2029) 
  • Assistance historical data and forecast (2014-2029) 

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

Thanks to reinvesting premiums in high-return markets, profit has expanded during the current period. Future profitability looks even brighter as rising incomes and financial...

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 2024
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Investment vs. share of economy

Data tables

  • Industry Multiples (2017-2022)
  • Industry Tax Structure (2017-2022)
  • Income Statement (2017-2022)
  • Balance Sheet (2017-2022)
  • Liquidity Ratios (2017-2022)
  • Coverage Ratios (2017-2022)
  • Leverage Ratios  (2017-2022)
  • Operating Ratios (2017-2022)
  • Cash Flow & Debt Service Ratios (2014-2029)
  • Revenue per Employee (2014-2029)
  • Revenue per Enterprise (2014-2029)
  • Employees per Establishment (2014-2029)
  • Employees per Enterprise (2014-2029)
  • Average Wage (2014-2029)
  • Wages/Revenue (2014-2029)
  • Establishments per Enterprise (2014-2029)
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)

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 (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Top Questions Answered

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 2024?

There are 1,486 businesses in the Life Insurance & Annuities in the US industry in United States, which has grown at a CAGR of 5.4 % between 2019 and 2024.

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 declining at a CAGR of 0.1 % between 2019 and 2024.

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 Northwestern Mutual Life Insurance Co, Massachusetts Mutual Life Insurance Co and New York Life Insurance Co

What does the Life Insurance & Annuities in the US in United States include?

Individual annuities and Group 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 Northwestern Mutual 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.

Related Industries

Widen your 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

View all industries in United States

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.

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