JHA Announces 2009 U.S. Group Life and Disability Market Survey Results

SOUTH PORTLAND, Maine--(Business Wire)--
JHA is pleased to release the results of the 2009 U.S. Group Life Market Survey
and the 2009 U.S. Group Disability Market Survey. These leading annual industry
benchmark surveys cover Group Term Life, Accidental Death & Dismemberment
(AD&D), Short Term Disability (STD), and Long Term Disability (LTD) inforce and
sales premium results for 2009. Thirty-three insurance carriers participated in
the Life Survey, and 27 carriers participated in the Disability Survey.

As reported by participating carriers, Total Group Term Life inforce premium
remained stable in 2009, totaling roughly $19.4 billion. Combined STD and LTD
inforce premium declined by approximately 2%, to $13.2 billion, with STD and LTD
inforce premium each decreasing at the same rate of 2%.

Compared to 2008, the total number of employers offering coverage declined by
close to 4% for Group Term Life and by 1% for LTD, while the percent of
employers offering STD was up by just 1%. The total number of insured employees
declined across all three product lines, by close to 2% for Group Term Life and
by 3% for both LTD and STD.

Group Term Life sales were 5% lower than in 2008, totaling $2.4 billion. Volume
reported by participating carriers, however, increased by almost 5%. The average
face amount on new Group Term Life policies increased by 9%, to just over
$74,000.

With $2.3 billion in reported new annualized sales premium for 2009, combined
Group Disability sales (STD and LTD) growth was flat compared to 2008, with both
LTD and STD results remaining relatively unchanged year-to-year.

"It`s clear that Group Life and Disability premiums were negatively impacted by
the recession in 2009," said Drew King, President of JHA. "Employment was down
in most industries, and employers were challenged by tough conditions for both
revenue and profit growth. The economic environment will continue to force
employers to take a hard look at their overall benefit costs, and the share of
these costs that they pass on to employees. It will also be interesting to see
how health care reform implementation will impact group ancillary coverages like
Life and Disability."

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

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 management, 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.

JHA
Marcy Updike, 207-874-2261 x126

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