< ALACRA META ABSTRACT>BMI View: We have a positive long-term outlook for the US insurance sector - the largest insurance market globally. Rising household disposable incomes coupled with positive private consumption trends should benefit both life and non-life insurance through an uptick in demand. ...These growth drivers render the US insurance market attractive to potential foreign investors and we therefore anticipate more local acquisitions by foreign providers. Table: Headline Insurance Forecasts (United States ---------) ---- ---- ----e ----f ----f ----f ----f ----f Gross life premiums written, USDbn ---.-- ---.-- ---.-- ---.-- ---.-- ---.-- ---.-- ---.-- Gross life premiums written, USD, y-o-y --.- -.- -.- -.- -.- -.- -.- -.- Gross non-life premiums written, USDbn ---.-- ---.-- ---.-- ---.-- ---.-- ---.-- ---.-- ---.-- Gross non-life premiums written, USD, y-o-y -.- -.- -.- -.- -.- -.- -.- -.- e/f = BMI estimate/forecast. These growth drivers render the US insurance market attractive to potential foreign investors and we therefore anticipate more local acquisitions by foreign providers. ...Table: Headline Insurance Forecasts (United States ---------) ---- ---- ----e ----f ----f ----f ----f ----f Gross life premiums written, USDbn ---.-- ---.-- ---.-- ---.-- ---.-- ---.-- ---.-- ---.-- Gross life premiums written, USD, y-o-y --.- -.- -.- -.- -.- -.- -.- -.- Gross non-life premiums written, USDbn ---.-- ---.-- ---.-- ---.-- ---.-- ---.-- ---.-- ---.-- Gross non-life premiums written, USD, y-o-y -.- -.- -.- -.- -.- -.- -.- -.- e/f = BMI estimate/forecast.
...Life insurance is a well-developed market in the US, where density is expected to reach USD-,---.- per capita and penetration is estimated at -.- (premiums against GDP) as overall life premiums written increase by -.- to reach USD---.-bn in ----. The market is home to a large number of providers, and while historically low interest rates have hampered demand for various life products, as employment and income rates improve, we expect to see more consistent spending on both retirement products and traditional life insurance products moving forward. ...Life insurance is a well-developed market in the US, where density is expected to reach USD-,---.- per capita and penetration is estimated at -.- (premiums against GDP) as overall life premiums written increase by -.- to reach USD---.-bn in ----. The market is home to a large number of providers, and while historically low interest rates have hampered demand for various life products, as employment and income rates improve, we expect to see more consistent spending on both retirement products and traditional life insurance products moving forward. As a result, we anticipate that life insurers will write premiums of USD---.-bn in ----, rendering them an increasingly interesting opportunity for future investment, with particular scope for mergers and acquisitions in a fragmented marketplace. ...Average life expectancy in the US is not currently high by developed world standards. At just over -- years for men and women, the country falls around --th in the world rankings, according to the World Health Organization
...The US life insurance sector is expected to account for -- of total written premiums in ----, making it the smaller segment of the wider US insurance sector. Life premiums are forecast to grow by -.- annually on average over the --------- period. ...
