{ “title”: “American National Halts Life Policy Sales, Shifts Focus to Growth Areas”, “description”: “American National Insurance Co. is ceasing the sale of new life insurance policies while it prioritizes annuities, pension risk transfer, and property and casualty insurance.”, “tags”: “American National, life insurance, annuities, insurance”, “rewritten_content”: “American National Insurance Co. (ANICO) is changing its business strategy, which includes stopping the sale of new life insurance policies. This move will allow the company to concentrate on other areas, such as annuities, pension risk transfer, and property and casualty insurance.
Strategic Shift
The final date to submit new life insurance applications will be May 31, 2025, and all life policies must be placed by July 31, 2025, according to a company spokesperson. This shift in focus is designed to put more emphasis on areas where ANICO anticipates long-term growth. The company has assured that existing life insurance policies will continue to be serviced without interruption.
Financial Performance and Restructuring
According to the 2024 financial report from AM Best, American National reported a net loss of $243.4 million. The report also showed negative net premiums earned (NPE) of $2.09 billion in individual life insurance and $68.8 million in group life insurance. In contrast, individual annuities had $202.9 million in NPE, while group annuities had $433.6 million.
ANICO also made changes to its property and casualty operations. In 2023, it announced plans to exit the homeowners insurance market in nine states due to ongoing profitability challenges. The states affected include California, Louisiana, Arkansas, Colorado, Minnesota, Oklahoma, South Carolina, South Dakota, and Washington.
Acquisition and Industry Context
American National became part of Brookfield Asset Management Reinsurance Partners Ltd. in 2022 through a $5.1 billion acquisition.
Industry Trends: Exits in the US
In late 2024, several U.S. life insurance companies were instructed to stop writing new policies due to financial instability and regulatory issues, although these were not voluntary. Atlantic Coast Life Insurance Company, along with its reinsurer, Southern Atlantic Re, received an order from the South Carolina Department of Insurance to halt new policy issuance by December 31, due to concerns about their ability to meet financial obligations. Any policies issued after the deadline were mandated for cancellation, with funds returned to purchasers within five business days.
Similarly, Sentinel Security Life Insurance Company, along with its associated reinsurers, Haymarket Insurance Company and Jazz Reinsurance Company, were instructed by the Utah Insurance Department to cease writing new business after December 31. The Utah department cited hazardous financial conditions and insufficient capital to meet liabilities. Investigations revealed significant investments in high-risk assets and businesses controlled by their parent company, Advantage Capital Holdings, raising potential conflicts of interest and investment regulation violations.
