When a Life Carrier Walks Away: What American National’s Exit Means for the Future of Our Industry

In a move that’s raising eyebrows across the insurance landscape, American National has officially announced it will exit the life insurance business by July 2025, shifting its attention to digital annuity sales, pension risk transfer (PRT), and P&C insurance lines. On paper, the pivot stems from a $243.4 million net loss in 2024, with life insurance segments showing significant negative net premiums earned. In contrast, annuities—both individual ($202.9M) and group ($433.6M)—showed signs of life, and then some.

But let’s be honest: this isn’t just about a balance sheet.

It’s a canary in the coal mine.
It’s a signal that product mix, consumer behavior, and institutional strategy are diverging fast—and that advisors who don’t pay attention may soon find themselves left behind.

The Data Behind the Departure

American National’s exit from life insurance wasn’t abrupt—it was strategic. Here’s what the numbers reveal:

• Net loss (2024): –$243.4 million

• Individual Life NPE: –$2.09 billion

• Group Life NPE: –$68.8 million

• Individual Annuities NPE: $202.9 million

• Group Annuities NPE: $433.6 million

From a business perspective, this isn’t a retreat—it’s a reallocation of capital to higher-margin, lower-risk products. Annuities—particularly fixed and indexed—offer a predictable spread business in a volatile environment. Life insurance? Not so much.

Add to that the cost of reserves, regulatory complexity, and long tail liabilities of permanent life blocks, and it’s no surprise American National said, “We’re out.”

What This Means for Financial Professionals

1. Don’t Mistake This for an Anomaly

Yes, American National wasn’t a top-tier life insurance giant. But their move is reflective of a larger trend: consolidation, repricing, and strategic exits across legacy life blocks. Others are quietly making similar calculations.

If you’re basing your practice on carrier relationships or assumptions that haven’t evolved in the last five years, you’re sitting on shifting sand.

2. Expect More Focus on Annuity Simplicity and Digital Access

American National’s simultaneous launch of a direct-to-consumer digital annuity platform reveals more than just tech ambition. It’s a blueprint for how carriers want to scale annuity distribution: lower acquisition costs, simplified products, streamlined underwriting, and less reliance on traditional wholesalers or complex planning conversations.

That’s not necessarily a bad thing—but it’s a wake-up call. Advisors must lean into what can’t be commoditized: holistic advice, multi-product strategy, and fiduciary trust.

3. Clients Deserve Context, Not Just Quotes

As American National (and possibly others) pull back from life insurance, clients will get confused. They may assume life insurance is going extinct—or worse, that annuities are “safer” simply because they’re getting more attention.

This is your chance to reassert yourself as a planning-first advisor, not a product-first salesperson. Context builds trust. Product pushes erode it.

Is This Good for Clients?

Here’s the double-edged sword:

• On one hand, American National’s shift could lead to better innovation in annuities, faster processing, and more accessible guaranteed income solutions for retirees.

• On the other, the quiet withdrawal from life insurance—especially if not communicated well—risks undermining consumer confidence in one of the most essential protection tools on the market.

As advisors, we must resist the temptation to follow carrier cues blindly. Just because a product is profitable doesn’t mean it’s right for the client. We need to advocate for both protection and income—equally, and with clarity.

This Isn’t a Eulogy—It’s a Realignment

American National’s exit from life is not the end of the story—it’s the next chapter.
And how we write that chapter as an industry depends on one thing:

Whether we chase what’s easy or champion what’s right.

Annuities deserve a seat at the table. So does life insurance.
But it’s up to us, not the carriers, to decide how that table is set.