MassMutual top annuities writer in 2020 as Prudential Financial cuts back
May 3, 2021 by RJ Dumaual, Kris Elaine Figuracion
Massachusetts Mutual Life Insurance Co. became the largest writer of annuity products in 2020 amid Prudential Financial Inc.’s move to downsize its presence in the segment.
Prudential, which logged annuity considerations above $26 billion in 2019 and 2018, intends to halve its individual annuities business to 10% or less of earnings under a three-year plan designed to make the life insurer less market sensitive.
Piper Sandler analyst John Barnidge estimated that individual annuities currently account for 22% of Prudential’s normalized earnings and said cutting individual annuities will likely happen via “in-force block run-off as well as through reinsurance [and] block sales.” The individual annuities line of business has more than $175 billion in AUM, with more than 95% of that total in variable annuities.