American National Insurance Co. will halt the sale of new life insurance policies as it shifts focus toward other business lines, including annuities, pension risk transfer, and property and casualty insurance.
The company said May 31 will be the final date to submit new life insurance applications, and all life policies must be placed by July 31.
A spokesperson for American National said the decision reflects a strategic move to concentrate on areas where the company expects to see long-term growth. The carrier will continue to service existing life insurance policies without interruption.
According to its 2024 financial report from AM Best, American National recorded a net loss of $243.4 million. The report also showed negative net premiums earned (NPE) of $2.09 billion in individual life and $68.8 million in group life.
By comparison, individual annuities posted $202.9 million in NPE, and group annuities reported $433.6 million.
The company has also made changes to its property and casualty operations. In 2023, it announced plans to exit the homeowners insurance market in nine states, including California and Louisiana.
Other states affected include Arkansas, Colorado, Minnesota, Oklahoma, South Carolina, South Dakota, and Washington. At the time, American National cited ongoing profitability challenges as the reason for the exit.
American National became part of Brookfield Asset Management Reinsurance Partners Ltd. in 2022 through a $5.1 billion acquisition.
While not voluntary, in late 2024, several US life insurance companies were directed to cease writing new policies due to financial instability and regulatory concerns.
Atlantic Coast Life Insurance Company and its captive reinsurer, Southern Atlantic Re, were ordered by the South Carolina Department of Insurance to stop issuing new policies by Dec. 31. This directive was based on findings that the companies were operating with negative surplus levels, raising concerns about their ability to meet policyholder obligations.
The order also mandated that any policies issued after the deadline be canceled, with all funds returned to purchasers within five business days.
Similarly, in Utah, Sentinel Security Life Insurance Company and its associated reinsurers, Haymarket Insurance Company and Jazz Reinsurance Company, were instructed by the Utah Insurance Department to cease writing new business after Dec. 31.
The department cited the companies' hazardous financial conditions, noting that they lacked sufficient capital to meet liabilities. Investigations revealed significant investments in high-risk assets and businesses controlled by their parent company, Advantage Capital Holdings, leading to potential conflicts of interest and violations of investment regulations.
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