Financial Services Spotlight

Banking: As of the end of 2015, the U.S. banking system had $15.967 trillion in assets. It supports the world’s largest economy with the greatest diversity in banking institutions and concentration of private credit. In 2015, net income was up 7.3 percent to $161.6 billion. 

Asset Management: The U.S. asset management subsector is unrivaled in its depth and diversity. U.S. asset managers are currently meeting the pension management needs of over 60 percent of the global retirement market. Total U.S. pension assets were $24.5 trillion at the end of 2015. Moreover, if insurance assets and mutual funds are included, U.S. asset managers held more than $51.1 trillion of long-term conventional assets under management in 2015, or 47.2 percent of the global total for these funds.  Conventional funds were equivalent to 294 percent of U.S. GDP.

Insurance: In 2015, the insurance industry’s net premiums written totaled approximately $1.2 billion. According to NAIC data, premiums recorded by life and health insurers accounted for 45 percent, and premiums by property and casualty insurers accounted for 55 percent.  Additionally, about one-third of all reinsurance sold worldwide is bought by U.S. firms.  International insurance companies are actively seeking business partnerships and collaborations with U.S. insurance companies.  

Venture Capital: The venture capital industry was created in the United States and our venture capital ecosystem continues to support many of our most innovative companies.  In 2015 new commitments to venture capital funds in the United States totaled $28.2 billion, and total investment for the year reached $59.1 billion, marking the highest amount deployed since 2000 and the second highest on record. Venture capital-backed companies employ 38 percent of the U.S. workforce within public U.S. companies and account for 82 percent of private sector research and development since 1979. Annually, VC-backed companies have historically generated revenue equal to 21 percent of U.S. GDP. (Source: Stanford University and NVCA)

Private Equity: U.S. private equity firms invested more than $625.89 billion in U.S.-based companies in 2015 (most recent data available). The private equity industry in the United States comprises nearly 3,847 investment firms, operating U.S.-based businesses in all 50 states. Companies backed by U.S. private equity firms employ 11.3 million people in the United States and 19.6 million people worldwide. In 2015, business services and consumer-related businesses attracted the majority of U.S. private equity investment. (Source: PEGCC)