Profits of the nation's life and health insurers plummeted $9.9 billion to a mere $542.6 million in the
first quarter of 2008, a 95% decline from $10.4 billion in the same period a year ago.

Profits -- made up of operating income from the business of writing insurance and realized
gains/losses on investments -- were down for the first time since first-quarter 2005 and were the
worst first-quarter industry results in the 15 years that TheStreet.com Ratings (and its predecessor
Weiss Ratings) has followed the industry.

The industry suffered a decline in its operating results as well as a massive realized loss on
investments. Operating income for the industry declined 28% to $11.9 billion in the first quarter of
2008, down $4.6 billion from $16.5 billion in 2007, while investment results turned negative in a big
way.

Realized losses on investments totaled $5.3 billion, down from a positive $1.1 billion gain during the
first quarter of 2007, primarily due to a writedown of the bond portfolio.
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