LIFE AND ANNUITY INSURANCE
American National to Stop Writing New Life Insurance Policies in Business Pivot
GALVESTON, Texas //BestWire// - American National Insurance Co. will cease writing new life insurance policies as part of a "strategic" shift to other products for growth.
The carrier said it will have a May 31 cutoff date for new business submission and all life policies must be placed by July 31.
"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 & casualty lines," an American National spokesperson said in an email. "We have strong confidence in these businesses and expect them to be a big part of our long-term success."
American National "remains committed" to serving current policyholders and will continue servicing all in-force policies without interruption, the spokesperson said.
The company posted a net loss of $243.4 million in 2024, according to its Best's Financial Report.
Looking at net premiums earned, individual life posted a negative $2.09 billion, and group life posted a negative of $68.8 million, according to the report. Individual annuities had an NPE of $202.9 million and the group annuities segment reported $433.6 million, according to the report.
In 2022, Brookfield Asset Management Reinsurance Partners Ltd. closed on its $5.1 billion acquisition of American National Group Inc (BestWire, May 26, 2022). Under the terms of the transaction, Brookfield Reinsurance acquired all issued and outstanding shares of American National Group Inc. at a price of $190 per share.
On the P/C front, American National said last year it planned to exit homeowners insurance business across nine states from the South to the West Coast (BestWire, March 1, 2024). The move was driven by significant and persistent profitability issues in the homeowners insurance market, according to a company spokesperson.
American National planned to join a number of other insurers limiting or leaving homeowners business in California and Louisiana. It also would exit Arkansas, Colorado, Minnesota, Oklahoma, South Carolina, South Dakota and Washington, potentially starting in the second quarter, it said at the time.
Operating entities of Brookfield Wealth Solutions Ltd, American National's ultimate parent, currently have a Best’s Financial Strength Rating of A (Excellent) and A- (Excellent).
Shares of Brookfield Corp. (NYSE: BN) traded during the afternoon of March 27 at $54.06, down 0.42% from the previous close.
(By Terrence Dopp, senior associate editor, Best’s Review: Terry.Dopp@ambest.com)