American National Insurance Company has announced it will stop selling new life insurance policies. This decision comes as the company shifts its focus to other areas of its business, such as annuities, pension risk transfer, and property and casualty insurance.
The last day to submit applications for new life insurance policies will be May 31, 2025. All life insurance policies must be finalized by July 31 of the same year. Despite this significant change, American National will continue to service existing life insurance policies without any interruptions.
A spokesperson for the company explained that this move is part of a strategic plan to concentrate on areas where they expect better long-term growth. This shift follows a challenging financial period for the company, which reported a net loss of $243.4 million in its 2024 financial report. The report also indicated negative net premiums earned in both individual and group life insurance, totaling over $2.1 billion.
In contrast, the company saw better performance in its annuity segments, with individual annuities earning $202.9 million and group annuities $433.6 million.
In addition to exiting the life insurance market, American National is also making changes to its property and casualty operations. In 2023, the company announced plans to leave the homeowners insurance market in nine states, including major markets like California and Louisiana, citing ongoing profitability challenges as the reason for this exit.
American National became part of Brookfield Asset Management Reinsurance Partners Ltd. in 2022 after a $5.1 billion acquisition. This recent shift in strategy aligns with broader trends in the industry, where several life insurance companies have been directed to stop writing new policies due to financial instability.
In late 2024, the South Carolina Department of Insurance ordered Atlantic Coast Life Insurance Company to cease issuing new policies due to negative surplus levels. Similarly, in Utah, Sentinel Security Life Insurance Company faced similar restrictions due to hazardous financial conditions.
As American National moves forward with its new focus, it reflects a significant shift in the landscape of life insurance in the U.S., highlighting the importance of financial stability and strategic planning in the industry.