US Life Insurance Companies to see growth earnings in 2025 while wrestling with the impact of higher interest rates, a dynamic annuities sector and the commercial real estate market’s effect on investment portfolios. Top 100 life insurance companies in USA admitted assets grew by 5.8% to $9,248 bn, according to Beinsure.com.
US health and life insurers’ capital and short-term liquidity make them unlikely to be forced sellers of real estate assets at distressed valuations, any commercial real estate losses are expected to remain within ratings sensitivities.
The US life and annuity sector reported stronger top-line growth in 2025, even as higher interest rates strained borrowers and pushed corporate default rates upward. Total income for the segment climbed 5.3% year over year, supported by double-digit growth in both premiums and investments.
Premiums and annuity considerations rose 13.7%, while net investment income gained 9.6%, underscoring the benefits insurers continue to draw from elevated yields. Net investment income alone reached $246.9bn in 2024, up 10% from the prior year, after recording 9% growth in 2023. The dynamic highlights the sector’s balancing act: elevated rates deliver stronger investment returns and higher annuity sales, but they also amplify credit risk exposures. For life carriers, the gains in income are tangible, yet the resilience of corporate borrowers and real estate portfolios will remain key watch points moving into 2026.