Despite the immense losses suffered in 2008 and this year due to the credit crunch, it has been predicted that life insurance firms would emerge stronger and better.

A study suggested that the industry saw a statutory net of $51 billion and that losses would continue to the end of the year.

But the Conning & Co. survey added that there would be a stable growth for the industry between 2009 and 2011, which would be stimulated by estate planning and consumers’ need for stable investment alternatives.

At the end of last year surplus levels for life insurance industry, according to an estimate, fell from $314.1 billion in 2007 to $272.7 billion.

However, Conning explained that surplus levels are expected to rise to $336.9 billion by the end of 2011.

And statutory-net-operating losses, which reached $1.1 billion last year, would return to the black for 2009. This would mean a gain of $21.6 billion.