Locking down a reliable income stream for retirement has catapulted annuities into the spotlight, with their popularity soaring among Americans. The trade body LIMRA, which meticulously tracks life insurance and annuity figures, reported that the top players amassed over $170 billion in annuity sales throughout 2024.
Essentially, annuities function as contracts crafted to guarantee you a consistent income flow, most commonly during your post-career years. You invest funds with an insurer—either as a lump sum or staggered payments—and in return, they commit to paying you at regular intervals later on. While some annuities provide a preset interest rate, others let your returns dance to the rhythm of market fluctuations.
This rundown peels back the curtain on the annuity powerhouses, ranked by their total sales volume. Alongside, we delve into the array of annuity products they roll out, their financial robustness, and other crucial details to help you zero in on a provider that genuinely fits your retirement puzzle.
Top Annuity Players by 2024 Sales
Collectively, these companies chalked up almost 40% of the entire annuity sales market last year.
Presented below are the gross sales numbers courtesy of LIMRA, paired with highlights that set each insurer apart in this fiercely competitive landscape.
1. Athene Annuity & Life: $35.98 Billion
Claiming the throne in 2024, Athene surged ahead to snag the leading spot not just in total annuity sales but also specifically in fixed annuities, as LIMRA’s data reveals. With total premiums topping a colossal $35.9 billion, the bulk—around $34.8 billion—is attributed to fixed annuities.
Driving this dominant position is Athene’s powerhouse distribution machine: about 80% of its retail annuity volume streams through financial institutions. By forging tight-knit alliances with banks, independent marketing organizations, and broker-dealers, Athene has anchored itself as a retail annuity heavyweight.
Rooted in Iowa and buoyed by the financial muscle of private equity titan Apollo Global Management, Athene provides a robust mix of multi-year guaranteed annuities (MYGAs) and fixed indexed annuities—products that blend the allure of market-tied returns while shielding investors from downside risk.
What Works in Athene’s Favor
- Transparent and easy-to-locate rates on flagship offerings
- Extensive lineup of fixed annuities paired with income riders
- Rock-solid financial standing via Apollo, boasting an AM Best A+ rating
Where Athene Falls Short
- Absence of variable annuity options limits diversification
2. Corebridge Financial: $26.64 Billion
Emerging from the shadow of AIG Life & Retirement’s spin-off, Corebridge leans on its legacy while carving a versatile annuity niche. It caters to a broad spectrum with fixed, indexed, and variable annuities—tailored for all flavors of retirement savers.
Ranking third for fixed annuities, just shy of $22.8 billion as per LIMRA, this segment constitutes the lion’s share of Corebridge’s total annuity sales.
In 2024, Corebridge pushed forward by widening its network of advisors and leveraging multiple distribution avenues. Strategic collaborations with Blackstone and BlackRock afford it privileged access to premium private fixed-income assets—a vital backbone for underwriting annuity contracts.
Pros at a Glance
- Expansive advisor and independent broker distribution channels
- Products boasting income guarantees and inflation safeguards
- Solid AM Best rating of “A”
Cons to Keep in Mind
- Some residual brand confusion lingering post-2022 AIG split
3. Massachusetts Mutual Life (MassMutual): $24.02 Billion
A staple in the U.S. mutual life insurance scene, MassMutual’s reputation extends firmly into annuity sales through its subsidiary, MassMutual Ascend. Their lineup of fixed and indexed annuities resonates well with conservative investors.
Backed by an exceptional A++ financial rating from AM Best and bolstered by strong customer satisfaction, MassMutual secured second place for fixed annuity sales in 2024 with $23.01 billion according to LIMRA.
Strengths
- Diverse offerings including single premium immediate annuities (SPIAs)
- Top-tier financial strength indicated by A++ rating
- Long-standing mutual company heritage
Weaknesses
- Opaque rate details and product info on their website
4. Equitable Financial: $22.46 Billion
Dominating the Registered Index-Linked Annuities (RILA) space, Equitable thrived in 2024, a year marked by soaring demand for these hybrid market participation products with downside protection. Holding over 21% market share in RILAs during Q4, it also topped RILA sales at $14.25 billion.
Equitable shines in traditional variable annuities too, placing second with $8.2 billion in sales.
The sector is pivoting towards registered investment advisors (RIAs), with 45% of insurers eyeing this as the prime growth frontier over the next three years according to Goldman Sachs. Equitable is well-armed for this evolution, equipping RIAs with commission-free tax-deferred investment management tools.
Advantages
- Front-runner in structured annuities and RILAs
- Flexible buffer options with RILAs offering market exposure
- Strong AM Best rating of “A”
Drawbacks
- Broken links to several variable annuity prospectuses on their website
5. Allianz Life of North America: $22.09 Billion
Holding firm in the variable fixed indexed annuity segment, Allianz ranked fourth for variable annuity sales in 2024 according to LIMRA. It also placed second in the RILA segment, posting $9.26 billion in sales.
Featuring 11 fixed indexed annuities, many without annual fees and flexible income options, Allianz stands out for its customer-friendly terms.
The company’s financial resilience shines through an AM Best A+ rating, a testament to its commitment to meet long-term obligations vital for retirement funding.
Pros
- Leader in fixed indexed annuities with a broad product suite
- Some products include no-fee income riders
- Transparent and accessible rate information online
Cons
- Lengthy surrender periods extending up to 10 years
6. New York Life: $22 Billion
As a mutual insurer, New York Life continues to be one of the bastions of financial stability among annuity providers. It achieved solid sales in 2024 driven by its fixed and income annuity offerings, ranking fourth with fixed annuity sales at $16.08 billion according to LIMRA.
The firm updates a weekly annuity rate chart, aiding consumers in comparing returns on fixed and income products. Starting premiums as low as $5,000 make their products approachable for middle-income savers.
Perks
- Reputable brand backed by an A++ AM Best rating
- Clear and transparent online rate tools
- Low minimum initial premiums
Shortcomings
- Does not offer fixed indexed annuities
7. Nationwide: $17.26 Billion
Rounding out this list, Nationwide boasts a well-rounded annuity lineup spanning fixed, indexed, and variable options. It clinched fourth place for traditional variable annuity sales with $5.8 billion in 2024.
Its consistently lauded digital tools and customer service complement an expanding catalog that now includes both floor-based and buffered RILAs, catering to risk-conscious investors seeking growth with downside limits.
Strengths
- Diverse annuity portfolio with robust indexed and RILA products
- A+ rating from AM Best
- Trusted brand with strong ties to financial advisors
Weaknesses
- Income riders add complexity and additional costs
What Exactly Is an Annuity?
Simply put, an annuity is a pact you strike with an insurance company: you hand over money now—either all at once or in installments—and they commit to paying you back regularly down the road.
Designed primarily for retirement, annuities offer tax-deferred growth, guaranteed income streams, and sometimes shield you from market downturns. Many come with a standard backing from your state’s insurance guaranty association, which typically covers up to $250,000 per annuity, providing a safety net in case of insurer default.
Choosing a provider with solid financial ratings and a proven track record is key for your peace of mind.
Types of Annuities Broken Down
No single annuity fits all, so here’s a quick glance at the five primary flavors you’re likely to encounter.
Fixed Indexed Annuities (FIAs)
These earn interest based on stock market indexes like the S&P 500 but with a safety net to protect your principal when markets slide. However, your upside is capped.
Ideal for: Those seeking market-linked growth without exposing their principal to losses.
Variable Annuities
Offering growth potential tied to investment portfolios, variable annuities defer payouts until a future date—usually years or decades down the line. The “variable” tag means your returns can fluctuate.
Ideal for: Long-haul retirement savers looking to build tax-deferred wealth.
Immediate Annuities
These start sending income payments almost right after your initial investment, turning your lump sum directly into a paycheck stream.
Key Tips for Navigating Annuities
- Define Your Objectives: Are you aiming to safeguard your principal, pursue tax-deferred growth, or secure guaranteed retirement income? Your goals shape the right product choice.
- Shop Around: Since annuity terms, fees, and riders vary widely, comparing multiple quotes arms you with the insight to negotiate better deals.
- Check Financial Health: Always verify ratings from AM Best, Moody’s, and Standard & Poor’s—the strength of the insurer anchors your annuity’s security.
- Understand Fees: Variable annuities often carry hefty surrender charges if you withdraw funds in the first 5-10 years, though many now allow penalty-free withdrawals of around 10% annually. Know your contract’s fine print.
The giants topping this list excelled by crafting products that resonate with buyers. Market leaders like Athene, Corebridge, and MassMutual showcase unique strengths—but remember, the most popular option doesn’t always align with your personal needs. Given the complexity and longevity of annuities, thorough research and clarity on your financial goals are indispensable before committing your hard-earned money for years or decades ahead.