Structured Settlement Annuities Mainly Issued by Largest Insurance Groups

Structured settlement annuities tend to be issued by companies in the largest insurance groups as the July 2011 Best's Review shows.

The following table shows those insurance groups that made the top 20 in assets and included companies that issued or fomerly issued structured annuities. All of those insurance companies had assets exceeding $100 billion at the end of 2010.

Life/ Health Insurers                                    2010 Assets (000)   Growth Rate

1. Metropolitan Life and Affiliated Companies   $575,062,104      9.1%

2. Prudential of America Group                       $403,755,468      9.9%

3. Manulife (incl John Hancock & NY affiliate)  $237,477,486      9.3%

4. Sun America Financial (incl Am.Gneral)        $230,208,221      4.2% @

5  Hartford Life Group                                    $228,628,548       4.2%

7. New York Life Group                                   $214,437,508       6.3%

8  AEGON USA Group                                      $187,622,590       4.3%*

9. ING USA Life Group                                    $185,172,540       3.8%*

13. Mass Mutual Financial Group                     $141,142,242       6.1%*

15. Pacific Life Group                                     $102,642,324       4.8%

* life insurance companies in the group formerly issued structured annuities

@ includes both current and former structured annuity companies

Source: A.M. Best Best's Review July 2011 p 28-29

The 2010 results suggest that "bigger is better" as the top 3 grew their assets by over 9%. The industry average  was 7.1% according to A.M. Best.

Compare the size of these life insurance groups to some well known companies in other industries

JP Morgan  2.12T

Exxon Mobil  $302.51B

Microsoft Corporation $99.73 B

Apple $86.74B

Coca Cola $72.92B

Disney  $70.95B

Pepsi  $68.15B

Google $57.85B

McDonalds $31.98B

American Airlines $25.09B

Source: Y Charts (Dec 2010 Balance Sheet Assets)

Disclaimer: The purpose of the above table is to show that life insurers are among the largest U.S. companies in the United States and offer a means of comparison to thsoe unfamiliar with insurance. Note that there are generally three primary elements to a balance sheet (assets, liabilities and shareholder's equity). Some insurers listed are mutual companies which are regulated, but not poblicly traded and are owned by policyholders not shareholders.

 

by John Darer