These Graphics Chart Athene’s Surge to Top of Annuity Market

Just ten years ago, Athene didn’t stand out among annuity sellers. Watch what a difference a decade can make.

By Gretchen Lenth | April 3, 2024

Many carriers reported substantial gains in annuity sales in 2023, but none had a year quite like Athene.

The West Des Moines, Iowa-based insurer was once again the leader in individual annuity sales last year — and by what could be the widest margin since such sales data was first collected. In 2023, Athene sold just over $36 billion in individual annuities alone, according to data released by S&P Global Market Intelligence. That's well over $11 billion more than the next highest-selling company, MassMutual.

Athene's growth spurt could be the strongest indication yet of how private equity ownership has transformed the company. Since Apollo Global Management completed its merger with Athene in January 2022, the insurer has tripled its individual annuity sales. The slow-but-steady approach employed by other companies has resulted in growth, but none have kept pace with Athene.

But just a decade ago, Athene's annuity sales weren't anything special. The $2.7 billion reported by the company in 2013 landed it in 18th place in the U.S., and the gap between Athene and the top seller at the time — Jackson National — was a gaping $18 billion wide.

Eventually, Athene reached levels comparable to other top companies, and it successfully breached the top 10 in 2018. But the carrier spent the next three years with little upward movement. In 2021, Athene ranked ninth in the country for individual annuity sales. One year and a merger later, however, the insurer found itself in first place.

Athene's most recent sales number is a 12-fold increase from where it was in 2013. The two other dominant forces in the annuity market, MassMutual and Corebridge Financial, reported 2023 sales of $24.6 and $21.4 billion, respectively. Both companies saw growth in their annuity sales, but at less than half the rate as Athene.

National Growth
Athene's market dominance reaches across state lines — but with one major exception.

Ten years ago, Athene was lucky to place within the top 20 annuity sellers in any given state. Much like with the overall ranking, Athene didn't claim the No. 1 spot anywhere until private equity stepped in. Now, Athene is the top individual annuity seller in well over half the country.

The noticeable contrast from Athene's dominance across much of the U.S. is New York — a state infamous for its tight regulation of financial services — where it ranks 12th in individual annuity sales.

The Largest Piece of a Larger Trend
Athene's sharp growth might make it stand out, but it's not the only firm benefiting from what has been a particularly good time to sell annuities. Last year, total annuity sales reached a record high of $385 billion, according to Limra.

Keith Golembiewski, the assistant vice president for annuity research at Limra, said that high interest rates, a trend toward independent distribution models, and an aging population looking for guaranteed income in retirement have all contributed to two years of booming annuity sales.

This unique environment has also introduced more competition, but Golembiewski said there are several opportunities for companies to expand their market share.

"One typical lever that companies can pull is, of course, around product," he said. "To make sure they're staying competitive, they need to have products that resonate with advisors, agents, and even their wholesaling force."

Companies that were previously absent from the annuity market have introduced new products or reimagined existing ones with the hopes of getting more skin in the game, Golembiewski added.

Despite uncertainty around market drivers like Federal Reserve rate cuts and U.S. election results, Golembiewski said he remains bullish about the annuity market.

"Even if rates come down, the market is still growing," he said.