The recession and sagging stock market of the last 10 months has caused “significant deterioration” in investment results for U.S. life insurance companies, according to a new Fitch Ratings report.

The deterioration has hurt industry earnings and capital, the report said.

Statutory capital levels were volatile in 2008 for life insurers compared with expectations and prior years’ experience. For the 25 largest U.S. life insurance groups, the average decline in reported statutory capital was 13% in 2008.

However, changes ranged from an increase of 11% to a decline of 52% for individual groups.

During the last market and economic downturn in 2001 and 2002, an average annual increase of 6% over the previous five years and just a 1% decline occurred, Fitch said.