Life business shrinks for first time in 28 years

The financial market turmoil caused average shareholder capital in the life insurance industry to decrease by 30% to 40%

The global financial crisis has undermined life insurance business, said Swiss Re in its latest publication of Sigma. After adjusting for inflation, life premiums were down by 3.5% worldwide last year, while non-life premiums dipped by a more modest 0.8%. It was the first time since 1980 that premiums were down in real terms.