Did you know that Health and Life Insurance companies posted record high profits last year? The Life/Health Insurance Industry recorded $20 billion in profits last year, up from $10 billion in 2010. That makes sense given the fact that my premiums have pretty much doubled over the same time frame. We have all been feed the claim that premiums had to increase to pay for Obama-care. It looks like that extra cost was easily covered and the Insurance companies are laughing all the way to the bank. Since 2010, Net Income for MetLife is up 80%, Aflac’s Net Income is up 96% and Principal Financial Group’s Net Income is up 230%.
Over the same time frame, Net Income for the S&P500 was only up 38%. To put it into perspective, Net Income for Apple was up 245% compared to 230% for Principal Financial Group. Amazon’s Net Income is up 163% and Google’s Net Income is up only 49%. Three of America’s most dominating companies are barely beating the Life/Health Insurance companies. Now we all have a choice on whether to buy the new I-Phone or where to shop (online or at a store). By the way, Walmart’s Net Income is down 36% over the same period. However, we do not have a choice on Insurance. In fact, up until recently it was literally the law. What a great model, charge whatever you can and the government will force everyone to pay.
Since 2011, Insurance PACs have donated approx.. $13.3 million to candidates / PACs. The National Republican Congressional Congress received $180 thousand, the Republican National Committee received $150 thousand and the National Republican Senate Committee received $200 thousand. However, the Democratic Senatorial Campaign Committee also received $242 thousand, the Democratic Congressional Campaign Committee received $180 thousand and the New Democrat Coalition PAC received $90 thousand. Top individual politicians who received money from the Insurance PACs are Richard E Neal at $96 thousand, Kevin McCarthy at $93 thousand and Joe Crowley at $89 thousand.