10 Best Annuity Providers Unveiled

The 10 best annuity providers unveiled in this write-up give prospective annuity buyers choices for which insurers to use.

Choosing an annuity provider that will be able to fulfill an individual needs can be a daunting task. This article will simplify your search for the perfect annuity provider! The following list of the 10 best annuity providers unveiled has been chosen based on specific criteria including their financial strength, as ranked by reputable the credit ranking company, A.M. Best, as well as the range and diversification of annuities offered by the company and relevant financial metrics. 

• Prudential 

A.M. Best rating: A+

With Prudential, any annuitant can have the full confidence to customize an annuity to fit the needs of a given individual. Prudential offers a variety of annuities that can be tailored for each customer. Annuitants also can be certain that they are making a safe investment with Prudential.

With a large market cap of $33.25 billion and a relatively low amount of debt at $8.239 billion, Prudential has proven its financial strength. Prudential’s debt to assets ratio in 2019 was reassuring at 1.81. Furthermore, Prudential consistently has a large net income, reported as $4.196 billion for 2019. Prudential is a longstanding company with a historically strong financial performance.

• Lincoln Financial Group 

A.M. Best rating: A+

Lincoln Financial Group offers an array of annuity options that potential customers can explore. LFG has demonstrated that it is not the strongest life insurance company, but it definitely offers financial reliability. The company’s market cap is $9.25 billion, but it is accompanied by a relatively significant amount of debt at $6.748 billion. Its debt to assets ratio is somewhat high at 1.97, but not alarmingly high in any sense. The company has proven that it can generate considerable income, as its net income for 2019 hit $886 million.

• Pacific Life

A.M. Best rating: A+

Pacific Life provides a myriad of options that effectively offer every annuity variation. Pacific Life is a well-respected and reliable company that any annuitant can be sure to trust. Plus, Pacific Life’s user-friendly, detailed website gives potential buyers the opportunity to fully understand the annuity options. Pacific Life reported a net income of $725 million in 2019. 

• New York Life 

A.M. Best rating: A++

New York Life offers a variety of eight different annuity options, which include an array of fixed, variable and income annuities. The eight annuity options offered by NY Life allow the company’s customers to start with the foundational annuity that will be best for them, and then make any remaining decisions. The remaining decisions give the annuitant the ability to further customize his or her contract and ensure that it will fit specific needs. These decisions include deciding how long to defer payments, how long you want your payout phase to be, and more. NY Life sold $13.23 million worth of annuities in 2019 and reported a net income of $631 million for 2019. Anyone seeking an annuity will be able to find one that suits them at NY Life, and he or she can rest assured that the investment will be safe. 

• Mass Mutual

A.M. Best rating: A++

Mass Mutual offers annuitants five options when deciding which type of annuity will be best for them. These options include choices for both immediate and deferred annuities, as well as all three types of return on annuities: fixed, variable and fixed indexed. The company reported total 2019 sales through its U.S. insurance and retirement operations of $28.6 billion, up 15% from 2018, led by steady demand for life insurance and annuity products. Those results combined with net investment income and equity market performance to help boost net gain from operations before policy dividends and tax to $2.2 billion, a 21% jump from 2018. After factoring in policy owner dividends and other items, MassMutual reported a net income of $524 million, also up significantly from the prior year. The company announced it further maintained excellent financial strength and flexibility as its statutory surplus grew 21% to $19 billion over the prior year and total adjusted capital rose 23% to more than $24 billion, while the company continued to hold ratings among the highest of any insurance company. 

• AIG Life

A.M. Best rating: A

With AIG, potential annuitants have the luxury to choose from 10 different annuity packages. With this plethora of options, annuity buyers can undoubtedly find their perfect fit. AIG is a well-established insurance provider, but some of its financial metrics may be worrisome to a potential investor. AIG has a large market cap of $31.39 billion, but its debt outweighs its market cap of $36.08 billion in 2019. Plus, AIG’s debt-to-assets ratio is very high relatively speaking and is reported at 6.87. Despite its large debt, AIG does consistently bring in a large amount of income, with its 2019 net income of $3.348 billion. An annuitant can still make a safe investment with AIG but the potentially alarming financial measurements may worry some prospective customers.

• Fidelity 

A.M. Best rating: A–

Fidelity offers a range of annuity contracts that vary in terms of length, rate of return and payout options. Fidelity generated $315 million in net inflows in 2019. Investors can put their money into an annuity with Fidelity and have peace of mind that their investment will be safe.

• American Equity Investment Life Holding Company 

A.M. Best rating: A–

American Equity is a well-established company with the capacity to offer each important kind of annuity. Annuitants can be sure they are getting top-of-the-line service and have confidence in their investment with American Equity. American Equity has outstanding financial metrics and doesn’t rank higher only for the reason that it is a relatively small company compared to other insurers. Its net income for 2019 was $246.1 million, which is low when compared to its competitors. Its reported market cap is also small at $2.293 billion. However, along with its smaller market cap, AEL also has relatively low debt at $573 million. Its debt-to-assets ratio reflects great financial strength at 0.97. AEL is a smaller insurance company, but it is a financially sound company nonetheless.

• Midland National 

A.M. Best rating: A+

Midland National provides a range of annuity choices that are tailored to fit a variety of retirement plans. With its goal-oriented approach, it is guaranteed that any potential annuitant will be able to create an annuity contract to suit individual needs. Midland National is a subsidiary of Sammons Financial, a private company with more than $62 billion in life and annuity reserves.

• Mutual of Omaha

A.M. Best rating: A+

Mutual of Omaha has a portfolio of six annuity options for prospective buyers to choose from. Each of its options offers different features and benefits in regard to payout choices, death benefits and interest rates. It offers a wide assortment of options, providing an ideal choice to every annuitant. Mutual of Omaha is on the smaller side of insurers, generating a net income of $55.37 million in 2018.

Special thanks in preparing this summary of “10 Best Annuity Providers Unveiled ” goes to Bob Carlson, leader of the Retirement Watch advisory service and chairman of the Board of Trustees of Virginia’s Fairfax County Employees’ Retirement System with more than $4 billion in assets.