Introduction
Annuities are long-term investment vehicles designed to provide a steady income stream during retirement. Selecting the right annuity company is crucial to ensure your financial stability and achieving your long-term goals. This detailed guide will discuss the ins and outs of annuity companies, including their ratings, how to interpret these ratings, and how to select the right company for your needs. We will also provide a comprehensive list of annuity companies to help you make an informed decision.
List of Annuity Companies
Here’s a list of annuity companies in the market today, along with a brief description of their history and product offerings:
| Company Name | AM Best | Moody’s | S&P | Founded | Annuities Offered | Customer Service Number |
| Allianz Life | A+ | A1 | AA | 1896 | Fixed, Variable, Indexed, Immediate | 1-800-950-5872 |
| AIG | A | A2 | A+ | 1919 | Fixed, Variable, Indexed, Immediate | 1-800-445-7862 |
| American Equity | A- | Baa1 | BBB+ | 1995 | Fixed, Indexed | 1-888-221-1234 |
| American Life and Security | B++ | Not Rated | Not Rated | 1960 | Fixed, Indexed, Immediate | (402)-489-8266 |
| American National | A | Not Rated | A | 1905 | Fixed, Indexed, Immediate | 1-800-899-6806 |
| Americo | A | Not Rated | Not Rated | 1946 | Fixed, Indexed, Immediate | (800) 231-0801 |
| Athene | A | A3 | A | 2009 | Fixed, Indexed, Immediate | 1-888-266-8489 |
| Atlantic Coast Life | B++ | Not Rated | Not Rated | 1925 | Fixed, Indexed, Immediate | (844) 442-3847 |
| AXA Equitable | A | A2 | A | 1859 | Fixed, Variable, Indexed, Immediate | 1-800-352-5252 |
| Brighthouse Financial | A | A3 | A+ | 2016 (spin-off from MetLife) | Fixed, Variable, Indexed, Immediate | 1-800-882-1292 |
| Clear Spring Life and Annuity Company | A- | Not Rated | Not Rated | 1985 | Fixed, Indexed, Immediate | (800) 990-7626 |
| Delaware Life | A- | Not Rated | BBB+ | 2013 | Fixed, Variable, Indexed | 1-877-253-2323 |
| EquiTrust Life | B++ | Not Rated | BBB+ | 1966 | Fixed, Variable, Indexed | (866) 598-3692 |
| Fidelity & Guaranty | A- | Baa1 | A- | 1959 | Fixed, Variable, Indexed | 1-888-513-8797 |
| First Symetra National Life Insurance of NY | A | Not Rated | A | 1990 | Fixed, Variable, Indexed | 1-800-796-3872 |
| Genworth Life Insurance Co. | C++ | Not Rated | Not Rated | 1871 | Fixed, Variable, Indexed | (888)-436-9678 |
| Global Atlantic | A | A3 | A | 2004 | Fixed, Variable, Indexed, Immediate | 1-877-454-4777 |
| Guaranty Income LIC | B++ | Not Rated | Not Rated | 1926 | Fixed, Variable, Indexed | (800)-535-8110 |
| Great American Insurance Group | A+ | A1 | A+ | 1872 | Fixed, Indexed, Immediate | 1-800-854-3649 |
| Guardian Insurance & Annuity Co. | A++ | Aa2 | AA+ | 1860 | Fixed, Indexed, Immediate | (888)-482-7342 |
| Integrity LIC (Western and Southern Financial Group Affiliate Company) | A+ | Aa3 | AA- | 1966 | Fixed, Indexed, Immediate | (800)-325-8583 |
| Investors Heritage | B++ | Not Rated | Not Rated | 1960 | Fixed, Indexed, Immediate | (800)-422-2011 |
| Jackson National Life | A | A2 | A | 1961 | Fixed, Variable, Indexed, Immediate | 1-800-644-4565 |
| Kansas City Life Insurance Company | A- | Not Rated | Not Rated | 1895 | Fixed, Variable | 1-800-821-6164 |
| Liberty Bankers LifeInsurance Company | A- | Not Rated | Not Rated | 1958 | Fixed, Indexed | 1-800-274-4829 |
| Life Insurance Company of the Southwest (National Life Group Affiliate Company) | A+ | A1 | A+ | 1955 | Fixed, Indexed, Immediate | (800)-732-8939 |
| Lincoln Financial Group | A+ | A1 | AA- | 1905 | Fixed, Variable, Indexed, Immediate | 800-454-6265 |
| MassMutual | A++ | Aa3 | AA+ | 1851 | Fixed, Variable, Immediate, Deferred | 1-800-272-2216 |
| MetLife | A+ | Aa3 | AA- | 1868 | Fixed, Variable, Indexed, Immediate | 1-800-638-5433 |
| Midland National Life Insurance Company | A+ | A2 | A+ | 1906 | Fixed, Indexed, Immediate | 1-800-923-3223 |
| Minnesota Life (Securian Financial Affiliate Company) | A+ | Aa3 | AA- | 1880 | Fixed, Variable, Indexed, Immediate | 1-833-810-8260 |
| Mutual of Omaha | A+ | A1 | A+ | 1909 | Fixed, Indexed, Immediate | 1-800-775-6000 |
| Nassau Life and Annuity Company | B++ | Not Rated | Not Rated | 1851 | Fixed, Variable, Indexed, Immediate | (800) 541-0171 |
| National Life Group | A+ | AA- | Aa3 | 1848 | Fixed, Indexed, Variable | 1-800-732-8939 |
| Nationwide | A+ | A1 | A+ | 1926 | Fixed, Variable, Indexed, Immediate | 1-877-669-6877 |
| New York Life | A++ | Aaa | AA+ | 1845 | Fixed, Variable, Immediate, Deferred | 1-800-225-5695 |
| Oceanview Life and Annuity Company | A- | Not Rated | Not Rated | 1965 | Fixed, Variable, Immediate, Deferred | 1-833-656-7455 |
| OneAmerica | A+ | A1 | AA- | 1877 | Fixed, Immediate | 1-800-537-6442 |
| Oxford Life Insurance Company | A | Not Rated | Not Rated | 1965 | Fixed, Indexed | (866) 641-9999 |
| Pacific Life | A+ | Aa3 | AA- | 1868 | Fixed, Variable, Indexed, Immediate | 1-800-800-7646 |
| Pacific Guardian LIC | A | Not Rated | A | 1961 | Fixed, Variable, Indexed, Immediate | (800) 367-5354 |
| Penn Mutual | A+ | Aa3 | A+ | 1847 | Fixed, Variable, Indexed, Immediate | (215) 956-8000 |
| Principal Financial Group | A+ | Aa3 | A+ | 1879 | Fixed, Variable, Indexed, Immediate | 1-800-986-3343 |
| Protective Life | A+ | A1 | AA- | 1907 | Fixed, Variable, Indexed, Immediate | 1-800-866-9933 |
| Prudential Financial | A+ | A1 | AA- | 1875 | Fixed, Variable, Indexed, Immediate | 1-800-778-2255 |
| RiverSource | A+ | Aa3 | A+ | 1894 | Fixed, Variable, Immediate | 1-800-862-7919 |
| Reliance Standard | A++ | A2 | A+ | 1907 | Fixed, Indexed | 1-800-351-7500 |
| Sagicor Life Insurance Company | A- | Not Rated | Not Rated | 1840 | Fixed, Indexed | (246) 467-7500 |
| SBLI | A | Not Rated | A- | 1907 | Fixed, Indexed | 888-630-5000 |
| Securian Financial | A+ | Aa3 | AA- | 1880 | Fixed, Variable, Indexed, Immediate | 1-800-233-2881 |
| Sentinel Security Life | B++ | Not Rated | Not Rated | 1948 | Fixed, Variable, Indexed, Immediate | (800) 247-1423 |
| SILAC | B+ | Not Rated | Not Rated | 1935 | Fixed, Variable, Indexed, Immediate | (800) 352-5150 |
| The Standard Insurance Company | A | A1 | A+ | 1906 | Fixed, Variable, Indexed, Immediate | (800) 378-4578 |
| Symetra | A | A1 | A | 1957 | Fixed, Variable, Indexed, Immediate | 1-800-796-3872 |
| TIAA | A++ | Aa1 | AA+ | 1918 | Fixed, Variable, Immediate, Deferred | 1-800-842-2252 |
| Thrivent Financial | A++ | Aa3 | AA | 1902 | Fixed, Variable, Indexed, Immediate | 1-800-847-4836 |
| Transamerica | A | A1 | A | 1904 | Fixed, Variable, Indexed, Immediate | 1-800-797-2643 |
Company Ratings
The financial strength of an annuity company is crucial in determining its ability to fulfill its obligations to policyholders. Ratings agencies such as A.M. Best, Moody’s, Standard & Poor’s (S&P), and Fitch assess and rate insurance companies based on their financial strength, creditworthiness, and claims-paying ability.
Here is a table listing the ratings assigned by A.M. Best, Moody’s, S&P, and Fitch:
| A.M. Best | Moody’s | S&P | Fitch |
| A++ (Superior) | Aaa (Exceptional) | AAA (Extremely Strong) | AAA (Exceptionally Strong) |
| A+ (Superior) | Aa1, Aa2, Aa3 (High Quality) | AA+, AA, AA- (Very Strong) | AA+, AA, AA- (Very Strong) |
| A (Excellent) | A1, A2, A3 (Upper Medium Grade) | A+, A, A- (Strong) | A+, A, A- (Strong) |
| A- (Excellent) | Baa1, Baa2, Baa3 (Lower Medium Grade) | BBB+, BBB, BBB- (Adequate) | BBB+, BBB, BBB- (Good) |
| B++ (Good) | Ba1, Ba2, Ba3 (Non-Investment Grade Speculative) | BB+, BB, BB- (Less Vulnerable) | BB+, BB, BB- (Speculative) |
| B+ (Good) | B1, B2, B3 (Highly Speculative) | B+, B, B- (More Vulnerable) | B+, B, B- (Highly Speculative) |
| B (Fair) | Caa1, Caa2, Caa3 (Substantial Risks) | CCC+, CCC, CCC- (Currently Vulnerable) | CCC+, CCC, CCC- (Substantial Credit Risk) |
| B- (Fair) | Ca (Extremely Speculative) | CC (Highly Vulnerable) | CC (Very High Credit Risk) |
| C++ (Marginal) | C (Lowest Rated) | C (Imminent Default) | C (Near Default) |
| C+ (Marginal) | D (Default) | RD (Restricted Default) | |
| C (Weak) | SD (Selective Default) | D (Default) | |
| C- (Weak) | R (Regulatory Action) | ||
| D (Poor) | |||
| E (Under Regulatory Supervision) | |||
| F (In Liquidation) | |||
| S (Suspended) |
Interpreting Ratings
To help you understand the financial strength of annuity companies, we will delve deeper into the rating scales and methodologies used by the major rating agencies: A.M. Best, Moody’s, Standard & Poor’s (S&P), and Fitch.
A.M. Best
A.M. Best’s rating scale ranges from A++ (Superior) to F (In Liquidation). The agency also provides additional designations such as “u” (Under Review) and “nr” (Not Rated). The ratings can be broadly classified into three categories:
- Secure Ratings (A++ to B+): These companies exhibit strong financial strength and a superior ability to meet their ongoing insurance obligations.
- Vulnerable Ratings (B to C): These companies have weak financial strength and a limited ability to meet their ongoing insurance obligations.
- In Liquidation (D to F): These companies are in the process of liquidation or have been placed under regulatory supervision.
It’s important to note that A.M. Best also assigns an outlook to each rating (Positive, Negative, or Stable), which indicates the potential direction of the rating in the medium term.
Moody’s
Moody’s rating scale ranges from Aaa (Exceptional) to C (Lowest Rated). The ratings can be grouped into three main categories:
- Investment Grade (Aaa to Baa): These companies have strong financial strength and are considered low risk.
- Non-Investment Grade (Ba to Caa): These companies have weaker financial strength and are considered to be speculative or high-risk investments.
- Highly Speculative (Ca to C): These companies have extremely weak financial strength and are considered highly speculative or near default.
Moody’s also uses numerical modifiers (1, 2, and 3) to indicate the relative position of a company within a rating category. Like A.M. Best, Moody’s assigns an outlook (Positive, Negative, or Stable) to its ratings.
Standard & Poor’s (S&P)
S&P’s rating scale ranges from AAA (Extremely Strong) to R (Regulatory Action). The ratings can be classified into four categories:
- Investment Grade (AAA to BBB): These companies have strong financial strength and are considered low risk.
- Non-Investment Grade (BB to B): These companies have weaker financial strength and are considered speculative investments.
- Highly Speculative (CCC to C): These companies have very weak financial strength and are considered highly speculative or near default.
- Regulatory Action (D and R): These companies are either in default or are facing regulatory action.
S&P also uses “+” and “-” symbols to show relative standing within a rating category. Like other agencies, S&P assigns an outlook (Positive, Negative, or Stable) to its ratings.
Fitch
Fitch’s rating scale ranges from AAA (Exceptionally Strong) to DDD (Default). The ratings can be broadly classified into four categories:
- Investment Grade (AAA to BBB): These companies have strong financial strength and are considered low risk.
- Non-Investment Grade (BB to B): These companies have weaker financial strength and are considered speculative investments.
- Highly Speculative (CCC to CC): These companies have very weak financial strength and are considered highly speculative or near default.
- Default (C to DDD): These companies are in default or have defaulted on their financial obligations.
Fitch uses “+” and “-” symbols to denote relative standing within a rating category and assigns an outlook (Positive, Negative, or Stable) to its ratings.
When comparing ratings across different agencies, it’s crucial to remember that each agency has its rating scale and methodology. A high rating from one agency doesn’t necessarily mean the company will have a high rating from another. Therefore, it’s advisable to compare ratings across multiple agencies to get a comprehensive understanding of a company’s financial stability.
Comparing and Interpreting Ratings
To help you better compare and interpret ratings across the four major rating agencies, consider the following steps:
- Understand the rating scales: Familiarize yourself with the rating scales used by each agency and their respective categories (investment grade, non-investment grade, etc.). This will enable you to quickly assess a company’s financial strength based on its rating.
- Look for consistency across agencies: While each agency may use different methodologies, a strong company should generally have high ratings across all agencies. Consistent high ratings are a good indicator of financial strength and stability.
- Consider rating outlooks: The outlook assigned by the rating agencies (Positive, Negative, or Stable) can provide insight into the potential direction of a company’s rating in the medium term. A positive outlook suggests that the rating may be upgraded, while a negative outlook indicates a potential downgrade.
- Monitor rating changes: Regularly review and monitor changes in the ratings of the annuity companies you’re interested in. Rating downgrades can be a warning sign of potential issues, while upgrades may signal improving financial health.
- Utilize rating agency reports: Rating agencies typically provide detailed reports explaining the rationale behind their ratings. These reports can offer valuable insights into a company’s financial health, risk factors, and future prospects.
How to Select an Ideal Annuity Company
With a deeper understanding of ratings and how to interpret them, you can make more informed decisions when selecting an annuity company. Consider the following factors in addition to ratings:
- Product Offerings: Evaluate the variety of annuity products a company offers, such as fixed, variable, and indexed annuities. Choose a company that provides the type of annuity that aligns with your financial goals and risk tolerance. It is recommended to seek advice from a professional financial advisor if you do not completely understand the in and out of annuities. At AdvisorWorld.com, we regularly post detailed reviews of various fixed-indexed annuities. Also, you can let us know if you want a particular annuity reviewed in the comments.
- Fees and Expenses: Understand and compare the fees and expenses associated with different annuity products, such as surrender charges, annual fees, and management fees. Opt for a company with competitive fee structures that don’t erode your returns.
- Customer Service: Assess the company’s reputation for customer service, claims processing, and support. Look for companies that are responsive, helpful, and easy to work with, as this will be crucial in the long run.
- Track Record: Review the company’s historical performance and track record in terms of investment returns, claims processing, and customer satisfaction. A company with a strong track record is more likely to deliver a positive experience for its policyholders.
Conclusion
Selecting the right annuity company is a crucial decision that can significantly impact your financial future. By evaluating the financial strength, product offerings, fees, customer service, and track record of various annuity companies, you can make a well-informed decision that aligns with your financial goals and needs. At AdvisorWorld, we always strive to provide you with detailed, unbiased information about various annuity products and their reviews. In addition, you should consult with a professional financial advisor to ensure that the annuity product you choose is appropriate for your unique financial situation.
