## Figure 1.9. Life Insurance Companies’ Profitability and Capital

## Source details

**Canonical URL:** [Figure 1.9. Life Insurance Companies’ Profitability and Capital](https://www.imf.org/-/media/files/publications/gfsr/2017/october/chapter-1/pdf-data/figure1-9.pdf)

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### Summary statement
- Amid falling yields and bullish asset markets, life insurers have managed to restore profits ...  
- ... allowing them to retain earnings and lift capital buffers.

### Panel 1 — Life Insurers: Return on Assets (Asset-weighted indices, period averages)
- Periods shown: 2005, 06, 07, 08, 09, 10, 11, 12, 13, 14, 15, 16.
- Aggregate period groupings: 2005–07; 2008; 2009–16.
- Regions reported: Continental Europe; Japan; United States.
- Vertical scale markers included: 0, 4, 8, 12, 16 (top axis); and -4, -3, -2, -1, 0, 1, 2 (secondary axis range).
- Note on calculation: Return on assets is calculated by dividing net income by total tangible assets minus separate accounts. For Japan, separate accounts were not deducted in the denominator due to lack of data.

### Panel 2 — Life Insurers: Shareholder Equity Ratio (Percent)
- Regions reported: Continental Europe; Japan; United States.
- Period groupings: 2005–07; 2008; 2009–16.
- Note on calculation: The shareholder equity ratio is calculated by dividing the sum of common equity plus retained earnings by tangible assets minus separate accounts. For Japan, separate accounts were not deducted in the denominator due to lack of data.

### Data sources and notes
- Sources: Bloomberg Finance L.P.; and IMF staff estimates.
- Note: In panel 1, return on assets is calculated by dividing net income by total tangible assets minus separate accounts. In panel 2, the shareholder equity ratio is calculated by dividing the sum of common equity plus retained earnings by tangible assets minus separate accounts. In both panels, for Japan, separate accounts were not deducted in the denominator due to lack of data.

*Figure 1.9. Life Insurance Companies’ Profitability and Capital — source: Bloomberg Finance L.P.; and IMF staff estimates.*

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_Source: https://www.imf.org/-/media/files/publications/gfsr/2017/october/chapter-1/pdf-data/figure1-9.pdf_