American National Insurance Co. has introduced an online platform for purchasing fixed annuities, marking a step in its broader shift away from life insurance and toward other business lines such as annuities, pension risk transfer, and property and casualty insurance.
The digital portal was launched ahead of the company’s formal decision to stop writing new life insurance policies.
In March, American National confirmed it would cease accepting new life insurance applications after May 31, with all policies required to be placed by July 31. The company cited a strategic reallocation of resources to products it expects to drive long-term growth.
"American National has made the strategic decision to stop writing new life insurance business and will continue to focus on growing our annuity, pension risk transfer and property and casualty lines," a company spokesperson said in a report from AM Best.
According to American National’s 2024 financial report, the company posted a net loss of $243.4 million. The report showed negative net premiums earned (NPE) in life insurance segments, with individual life at -$2.09 billion and group life at -$68.8 million.
In contrast, individual annuities recorded $202.9 million in NPE, while group annuities posted $433.6 million.
American National has also been restructuring its property and casualty operations. In 2023, the company announced its exit from the homeowners insurance market in nine states, including California, Louisiana, Arkansas, Colorado, Minnesota, Oklahoma, South Carolina, South Dakota, and Washington. The company attributed the decision to profitability challenges in those markets.
The US life insurance industry experienced significant financial growth, with total premiums paid for individual life insurance reaching $16.2 billion in 2024, marking the fourth consecutive year of record-setting figures.
Despite the overall positive financial performance, several companies made strategic decisions to exit or restructure their life insurance operations. In late 2024, Atlantic Coast Life Insurance Company and its captive reinsurer, Southern Atlantic Re, were ordered by the South Carolina Department of Insurance to cease issuing new policies by Dec. 31 due to financial instability and regulatory concerns.
Legal & General also agreed to sell its US life insurance business to Japan's Meiji Yasuda for $2.3 billion in cash as part of a strategic overhaul. The deal also included Meiji Yasuda acquiring a 20% interest in Legal & General's US pension risk transfer business.
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