According to a new report from Gen Re, a company from South Portland, Maine, total group life insurance results experienced an increase in earned premium of 4 percent this year compared to mid-year 2010.
The 2011 U.S. Group Diability and Group Life Mid-Year Market Survey, which covered traditional and voluntary group life insurance, short-term disability, long-term disability and earned premium for the first half of the year, included responses from 21 carriers. Earned premiums for group life products in mid-year 2011 reached nearly $10.5 billion, according to the report.
Companies reported a combined earned premium for all products of $17.1 billion for mid-year 2011 and a combined annualized new sales premium of $2.6 billion, Gen Re said. Although sales premiums are unchanged from last year, earned premiums are up by about 3 percent.
“2010 full-year sales results were flat or down for the group life and disability markets,” says Drew King, senior vice president of group and specialty reinsurance at Gen Re. “However, we are seeing some signs of a recovery in the first half of 2011, led by LTD sales. For life and STD, carriers have found some success in growing their earned premium. It remains to be seen if carriers can hold on to this momentum for the remainder of the year.”