Combined revenue at the world’s top 20 insurers fell 5% to $US1.92 billion ($2.53 billion) in 2020 as 11 experienced declines and nine achieved “subdued-to-moderate revenue growth,” GlobalData says.

UK-based insurers Prudential, Aviva and Legal & General endured the most notable revenue declines, while Zurich’s investment income almost halved to $US12.3 billion ($16.21 billion) on a 56% decrease in returns on unit-linked investments related to its life business.

“Most of the top companies were not only affected due to the decline in investment returns...but also witnessed declines in new business activities and, subsequently, premium income,” GlobalData analyst Parth Vala said.

Prudential’s top line was hit by a substantial rise in outward reinsurance premiums to $US32.2 billion ($42.55 billion), from just $US1.6 billion ($2.11 billion) a year earlier, as it paid Athene Life Re for reinsuring its in-force fixed and fixed index annuity business. This brought down its net earned premiums by around 75%.

In addition, it was hurt by a 5% decline in gross written premiums on lower new business premiums from Asia and lower sales of annuities in the US.

Aviva experienced weak investment returns, especially from a 51% drop in its UK & Ireland Life business, a 70% drop in France and 28% drop in investment income in Italy.

Legal & General, which derives around 80% of its revenue from investment activities, suffered a 26% contraction in its investment income in 2020 to £39.2 billion ($71.96 billion).

Of the remaining nine players, Allianz, China Life and China Pacific insurance achieved 10% revenue growth while Dai-ichi Life topped 20% as the weaker Japanese yen allowed investments to soar from the previous year.