For immediate release
September 29, 2010

Portland, ME, September 29, 2010 …JHA, a division of Gen Re, is pleased to release the results of the 2010 U.S. Group Life and Group Disability Mid-Year Market Surveys. These leading industry benchmark surveys cover Traditional/Basic and Voluntary Group Term Life, Short Term Disability (STD) and Long Term Disability (LTD) sales and earned premium for the first half of the year.

Thirty carriers participated in the Group Life survey, representing close to 80% of the Group Life market, while 27 carriers took part in the Group Disability survey, covering just over 95% of the Group Disability market.

Participating companies reported an increase of 2% in Total Group Term Life earned premium compared to mid-year 2009, reaching over $8.8 billion at mid-year 2010. Basic Group Term Life once again represented the majority of the Total premium. Total Group Disability earned premium, for STD and LTD combined, decreased by 2% to $6.6 billion. Both STD and LTD earned premium declined slightly, by 1% and 2%, respectively.

Compared to the same time period last year, the number of employers offering insurance remained relatively unchanged for Disability (STD and/or LTD), and declined slightly for Group Life.

Across all product lines, the number of insureds decreased, by 2% for STD and LTD, and by 3% for Group Life.

Group Term Life annualized sales premium totaled more than $1.2 billion at mid-year 2010, a decrease of 3% over mid-year 2009. Total new sales volume, however, showed an increase of 7%, reaching close to $397 billion. The corresponding average face amount on a new Group Term Life policy for mid-year 2010 reached $78,233, a substantial (17%) increase for companies reporting in both years.

New annualized premium for Group Disability (STD and LTD) totaled over $1.1 billion, a 17% decrease versus mid-year 2009 results. STD sales premium was down by close to 8%, while new LTD sales premium declined at a more significant rate of 21%. “After a tough year in 2009, sales and premium growth in the Group Life and Disability market continued to be a challenge during the first half of 2010,” said Drew King, President of JHA. “Slow economic growth, continuing high unemployment, and uncertainty about healthcare reform are combining to reduce sales and inforce growth opportunities for most carriers. The difficult environment is also impacting voluntary and worksite sales, even as many employers shift benefit costs and decisions to their employees.”

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, and is a Berkshire Hathaway Company.