06.15.26

North American Life Insurers Hold Firm Despite Market Turbulence

by: Josh Recamara

North American life insurers delivered resilient Q1 2026 results despite market volatility, with Morningstar DBRS reporting a 10% quarter-over-quarter rise in adjusted earnings across major firms such as MetLife, Prudential, Manulife and Aflac. However, reported net income lagged due to mark-to-market losses and hedging impacts, especially among annuity-focused insurers. Strong performance was supported by higher investment yields, underwriting gains and record annuity inflows, which topped $104.6 billion in Q1 and continue a multi-year growth streak. Beneath the strength, regulators are increasingly focused on insurers’ growing exposure to private credit, now a major share of balance sheets, alongside rising complexity and default risk. Despite solid capital levels, scrutiny is intensifying as interest rates and geopolitical shocks reshape returns and risk.

Read the full article on Insurance Business