American International Group Inc. saw its individual and group annuity considerations soar year over year in the second quarter, making it the second-largest underwriter of annuities in the U.S. during the period, according to an S&P Global Market Intelligence analysis.
AIG's total annuity considerations amounted to $6.04 billion in the quarter, with $1.62 billion coming from the group line and $4.42 billion in the individual line, up 132.6% from the prior-year period. The group attributed premium growth in the individual retirement segment to an improved interest rate environment, the prior-year impact of distribution channel disruptions due to COVID-19 and sequential growth in independent deals and other channels.
Massachusetts Mutual Life Insurance Co. retained its spot as the largest annuities writer despite recording a 6.5% decline in group annuity considerations. Jackson Financial Inc., which recently completed its demerger from Prudential PLC, climbed to the third spot with $4.95 billion of total annuity considerations, up 40.2% from $3.53 billion a year earlier.
Teachers Insurance & Annuity Association of America dropped out of the top 10 spots as it logged total annuity considerations of $3.67 billion, down 12.5% from $4.19 billion a year ago.
New York Life Insurance Co. fell five places to seventh as its total annuity considerations declined 19.9% on a yearly basis to $3.92 billion. On the other hand, Nationwide Mutual Group climbed five places to fifth with $4.32 billion of total annuity considerations, up from $2.71 billion a year ago.
Athene Holding Ltd. recorded the largest group annuity premium growth in this analysis, on a percentage basis, with a year-over-year increase of 546.5%.
The U.S. annuities market recorded $95.80 billion in total considerations in the second quarter, up 23.9% from $77.34 billion in the same period a year earlier.
Individual annuity considerations increased 37.1% to $62.48 billion from $45.58 billion in the second quarter of 2020, while group annuity considerations increased 4.9% year over year to $33.32 billion from $31.76 billion.