Life-Annuity Insurers Forecast Strong Earnings Growth Through 2027 Amid Rising Premiums, Portfolio Yields

The life-annuity sector is poised for robust growth through 2027, with Conning’s latest forecast projecting a rise in statutory net operating results from $27 billion in 2025 to $30 billion in 2027. Annuity premiums are expected to grow by 16%, driven by increased retirement savings and pension risk transfers. Meanwhile, life insurance premiums are projected to climb by 8%, reflecting strong demand from younger generations. For insurance professionals, including adjusters working in life and annuity lines, these forecasts signal a critical period where profitability hinges on adapting investment and capital strategies rather than relying on market tailwinds alone.

Central to this outlook is the anticipated rise in General Account portfolio yields, potentially reaching 4.22% by 2027. This growth is underpinned by continued asset diversification into private credit, mortgages, and alternatives, including Schedule BA assets. Claims professionals and those involved in pricing and reserving must also monitor emerging risks, such as the long-term effects of GLP-1 drugs on mortality and morbidity assumptions, which could challenge traditional underwriting models and long-range pricing structures.

Reinsurance remains a vital tool, with offshore and onshore strategies—particularly the increasing use of sidecars—supporting capital management and growth. Claims adjusters and insurers alike must also consider how innovation in product design, operational technology, and capital sourcing will impact their roles. The next three years represent a rare convergence of strong earnings, yield recovery, and regulatory stability. Those in the industry who leverage these conditions to innovate and adapt will be better equipped to handle shifts in claims trends, longevity assumptions, and investment performance over the long term.