U.S. group reinsurance assumed and group reinsurance in-force declined in 2005 over 2004, according to data culled by Munich American Reassurance Co., Atlanta, at the request of the Society of Actuaries, Schaumburg, Ill.
Total U.S. group reinsurance assumed declined to $41.1 billion in 2005, a 24.5% decline from $54.4 billion in 2004. The decline was largely accounted for by a decline in new group business reinsured. New business dropped to $36.1 billion in 2005 from $47.7 billion in 2004, a decline of 24.3%.
Group in-force business declined in 2005 to $166.6 billion from $177.7 billion in 2004, a 6.7% decline.
Canadian group reinsurance assumed increased to $22.2 billion in 2005, a 27% change from 2004′s $17.5 billion. New group reinsurance assumed grew to $17.7 billion in 2005, up from $14.8 billion in 2004, a 19% increase.
Canadian group reinsurance in-force grew to $173 billion in 2005, up from $168.5 billion in 2004, a change of 2.7%.
The decline in U.S. group reinsurance belies the growth in group life reinsurance reported by the American Council of Life Insurers’ 2005 Fact Book.
In 2004, according to the ACLI, based in Washington, group life face amount as measured by purchases grew to $1.1 trillion compared with $1.05 trillion in 2003 and $560.2 billion in 1994.
The number of group certificates, according to the ACLI Fact Book, totaled 25.9 million in 2004 compared with 22 million in 2003 and 18.4 million in 1994.
Group life insurance in-force totaled $7.6 trillion in 2004, up from $7.2 trillion in 2003 and $4.4 trillion in 1994, the ACLI Fact Book says.
The number of certificates in force, according to the ALCI, reached 165.5 million in 2004, compared with 162.7 million in 2004 and 145 million in 1994.