--- title: "Life & Health Insurance Industry" description: "15 SEC filers are classified under the Standard Industrial Classification codes that describe the life & health insurance industry." canonical: https://www.getswoopr.com/stocks/industries/financials/life-and-health-insurance/ source: "Swoopr Investment: https://www.getswoopr.com" --- # Life & Health Insurance Industry ## Direct Answer 15 SEC filers are classified under the Standard Industrial Classification codes that describe the life & health insurance industry, and their latest annual reports show $255.6 billion of combined revenue and a median operating margin of 8.0%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics. ## Industry Overview Life and health insurers sell life, annuity, disability and supplemental health products and invest premiums over long periods. Investment spreads, mortality and morbidity experience and capital strength drive results. The first numbers to compare across companies here are premiums and sales, investment spread and benefit ratio. ## Key Industry Metrics - **Premiums and sales**: Premiums collected and new policy sales. They show growth in the book, and the mix between life, annuity and health matters. - **Investment spread**: Gap between investment earnings and the rates credited to policyholders. It is a major profit source, and compresses when yields fall. - **Benefit ratio**: Claims and benefits paid as a share of premiums. It reflects mortality and morbidity, and rises with adverse experience. - **Statutory capital ratios**: Regulatory capital relative to the required level. It shows ability to absorb shocks, and limits dividends and growth. - **Persistency**: Share of policies kept in force over time. Higher persistency supports profit, since acquisition costs are recovered over years. ## Primary Macro Drivers - **Interest rates**: Rates affect investment income and what can be credited on products, so they change investment spread and sales. - **Mortality and morbidity trends**: Longer life and claims patterns change benefit payments, shown in the benefit ratio and results by product line. - **Credit quality of portfolio**: Bond and private asset quality drives investment income and capital. Watch credit impairments and statutory capital ratios. - **Sales growth**: New policies and group sales add premiums and future earnings, shown in premiums and sales and persistency. ## Major Risks - **Credit losses**: Defaults and downgrades reduce income and capital. Watch the portfolio's credit mix, impairments and statutory capital ratios. - **Low interest rates compressing spread**: When investments earn less than assumed, margin over credited rates shrinks. Watch investment spread and portfolio yield versus crediting rates. - **Claims experience**: Claims running above pricing assumptions reduce profit. Watch the benefit ratio and reserve development. - **Reserve adequacy**: Reserves rest on long-term assumptions that can prove wrong, requiring charges. Watch reserve changes and assumption updates. ## Industry Characteristics | Characteristic | Profile | | --- | --- | | Cyclicality | Mixed | | Capital Intensity | High | | Regulatory Intensity | High | | Industry Maturity | Mature | | Geographic Importance | U.S. / Global | ## Life & Health Insurance Filers in the SEC Record 15 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification codes 6311, 6321. Their latest fiscal years end between 2024 and 2025, and together they reported $255.6 billion of revenue. Median revenue growth over the prior year was 1.7%. Median operating margin was 8.0% and median net margin 5.4%. Median total liabilities were 93% of total assets, and 11 of 14 reported a profit in their latest year. | Company | Revenue | Growth | Operating margin | Net margin | Year | | --- | --- | --- | --- | --- | --- | | [Metlife Inc](https://www.getswoopr.com/stocks/companies/metlife/) | $77.1 billion | 8.6% | 8.0% | 4.1% | FY 2025 | | [Prudential Financial Inc](https://www.getswoopr.com/stocks/companies/prudential-financial/) | $60.8 billion | -13.7% | n/a | 5.9% | FY 2025 | | [Reinsurance Group Of America Inc](https://www.getswoopr.com/stocks/companies/reinsurance-group-of-america-incorporated/) | $23.7 billion | 7.2% | n/a | 5.0% | FY 2025 | | [Corebridge Financial, Inc.](https://www.getswoopr.com/stocks/companies/corebridge-financial-inc/) | $18.5 billion | -1.2% | n/a | -2.0% | FY 2025 | | [Aflac Inc](https://www.getswoopr.com/stocks/companies/aflac/) | $17.2 billion | -9.3% | n/a | 21.2% | FY 2025 | | [Principal Financial Group Inc](https://www.getswoopr.com/stocks/companies/principal-financial-group/) | $15.6 billion | -3.1% | n/a | 8.0% | FY 2025 | | [Unum Group](https://www.getswoopr.com/stocks/companies/unum-group/) | $13.1 billion | 1.5% | n/a | 5.6% | FY 2025 | | [Voya Financial, Inc.](https://www.getswoopr.com/stocks/companies/voya-financial-inc/) | $8.2 billion | 1.7% | 12.7% | 8.0% | FY 2025 | The 8 largest of 15 by revenue. Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code. ## Where to Go Next The Life & Health Insurance guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company. ### More in Financials - [Financials sector overview](https://www.getswoopr.com/stocks/industries/financials/) - [Life Insurance](https://www.getswoopr.com/stocks/industries/financials/life-insurance/) - [Japanese Banks](https://www.getswoopr.com/stocks/industries/financials/japanese-banks/) - [Life Reinsurance](https://www.getswoopr.com/stocks/industries/financials/life-reinsurance/) - [Investment Banks](https://www.getswoopr.com/stocks/industries/financials/investment-banks/) - [Market Data Providers](https://www.getswoopr.com/stocks/industries/financials/market-data-providers/) - [Investment Banking & Brokerage](https://www.getswoopr.com/stocks/industries/financials/investment-banking-and-brokerage/) - [Market Makers](https://www.getswoopr.com/stocks/industries/financials/market-makers/) - [International Banks](https://www.getswoopr.com/stocks/industries/financials/international-banks/) ### Put it to work - [How to analyze a stock](https://www.getswoopr.com/stocks/how-to-analyze-a-stock/) - [Fundamental analysis guides](https://www.getswoopr.com/learn/fundamental-analysis/) - [Company research](https://www.getswoopr.com/stocks/companies/) - [All industries](https://www.getswoopr.com/stocks/industries/) ## Frequently Asked Questions What are the main KPIs for the Life & Health Insurance industry? Key performance indicators for the Life & Health Insurance industry include: Premiums and sales, Investment spread, Benefit ratio, Statutory capital ratios, Persistency. Which matter most depends on the company's model, so compare them across several companies rather than relying on one. How cyclical is the Life & Health Insurance industry? The Life & Health Insurance industry exhibits mixed cyclicality characteristics. Some segments move with the broader economy while others maintain more stable demand, making stock selection within the group particularly important. What are the biggest risks in the Life & Health Insurance industry? The primary risks for Life & Health Insurance companies include: Credit losses, Low interest rates compressing spread, Claims experience, Reserve adequacy. Investors should assess each company's exposure to these factors and its track record of navigating them. **[Swoopr Editorial Team](https://www.getswoopr.com/authors/swoopr-editorial-team/)** Swoopr's editorial team produces independent investment education content reviewed for accuracy and clarity. We do not provide personalized financial advice. See our [editorial policy](https://www.getswoopr.com/legal/editorial-policy/) and [corrections policy](https://www.getswoopr.com/legal/corrections-policy/).