For immediate release
September 24, 2009

Portland, ME, September 24, 2009 …JHA, a division of Gen Re LifeHealth, is pleased to release the results of the 2009 U.S. Group Life and Group Disability Mid-Year Market Surveys. These leading industry benchmark surveys cover Group Term Life (Basic Term Life and Voluntary Term Life), Short Term Disability (STD) and Long Term Disability (LTD) sales and earned premium for the first half of the year.

Twenty-nine carriers participated in the Group Life survey, representing approximately 75% of the group life market, while 27 carriers participated in the Group Disability survey, representing close to 95% of the group disability market.

As reported by participating companies, Total Group Term Life earned premium reached just over $8.5 billion at mid-year 2009, an increase of 3% over mid-year 2008. Basic Group Term Life represented the majority of the total premium. Total Group Disability (STD and LTD combined) earned premium totaled close to $6.7 billion, remaining level compared to the first half of last year. LTD earned premium was flat for those companies included in the survey, while there was a slight 1% increase in STD earned premium.

While the number of employers offering Life or Disability insurance (LTD and/or STD) was mixed by product, the number of insured employees has declined compared to the same period last year. The number of employees with life and LTD insurance declined 2% while the number of insureds with STD declined 3%.

Group Term Life sales premium totaled roughly $1.2 billion at mid-year 2009, and total new sales volume was reported at well over $366 billion. The corresponding average face amount on a new Group Term Life policy for mid-year 2009 reached $73,776.

With over $1.2 billion in new annualized premium, Group Disability sales (STD and LTD) remained unchanged compared to mid-year 2008. STD sales premium was flat, while new LTD sales premium rose by 1%.

“The recession is having an impact on group life and disability sales and revenue,” said Drew King, President of JHA. “Due to decreases in employee income, the loss of insured lives due to layoffs, lower participation rates in voluntary plans, and a continued difficulty in attracting first time buyers, we believe that industry growth in revenue and covered lives will be a challenge for at least the rest of 2009.”

To obtain a summary of either Survey, visit JHA’s website at www.jhaweb.com. Participating companies receive the full report.

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JHA is the Disability and Group Life reinsurance, risk management and research division of General Re Life Corporation. Headquartered in South Portland, Maine, JHA offers its clients reinsurance solutions and consultative support in the areas of underwriting, risk assessment, pricing, valuation, claim management, marketing, distribution and product development. Through its research practice, publications, and industry events, JHA is the leading source for information and insight about the Disability and Group Life markets. General Re Life Corporation conducts business as Gen Re LifeHealth, and is a Berkshire Hathaway Company.