Although life insurers suffered a steep decline in gross investment returns over the last five years, there were signs of a recovery in 2005, according to a new study by Conning Research & Consulting, Inc. Overall, gross investment income returns on investable assets for the period 2001 to 2005 dropped from 7.10% in 2001 to 5.93% in 2004, before increasing to 6.02% in 2005. Accident & Health companies posted the most favorable average investment return over the period due to their heavy allocation to bonds, while Annuity companies reported the lowest return.
Conning Research: Life Insurers' Lackluster Gross Investment Returns Turn Up in 2005