AM Best finds declining credit quality and shifting dynamics in US annuity market
April 22, 2026 by Taylor Mixides
Wink’s Moore on the Market: I was going to post a synopsis of this article here.
However, I think that I pasted in nearly all of the article in my commentary.
So, this ENTIRE article is a MUST read.
For years I have been speaking with journalists about startups getting into the annuity market by aggressively competing with rates on MYGAs, and then transitioning to indexed annuities.
Well, AM Best finally got the memo.
Of interest- I want new startups coming in to realize that it is going to be tough to enter the annuity market at this point.
“Interest rates have begun to decline, and new growth may begin to taper off,” added Jason Hopper, Associate Director, AM Best. “The MYGA space is already very competitive, market share is tighter, and we may be approaching a time when it may be too late for new entrants to capitalize.”
LOTS of good tidbits here. -sjm
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A new report from AM Best, the credit rating agency, highlights notable changes in the US life and annuity sector.
According to AM Best, assets backing individual annuity products now represent more than 36% of total industry reserves, up from 32% prior to the 2008 financial crisis.
AM Best explains that this increase reflects a broader transition away from traditional defined-benefit retirement solutions toward models that depend more heavily on investment-driven returns.
