Quick Answer: Is Nassau Financial a Good Annuity Company?
Nassau Financial Group is a newer but financially solid carrier that has rapidly built a reputation for aggressive MYGA rates – it is worth consideration for rate-focused buyers, though its shorter operating history and A- AM Best rating make it best suited as one part of a diversified annuity strategy rather than the only carrier.
Last updated: March 2026 | Reviewed by: Elizabeth Prescott, AnnuityJournal Editorial Team
Company Overview
Nassau Financial Group is a Hartford, Connecticut-based insurance holding company founded in 2015. It operates through its primary subsidiary, Nassau Life and Annuity Company (NLAC), which issues MYGA and fixed annuity products distributed through independent agents nationwide. Nassau was created with private equity backing to compete aggressively in the fixed annuity market by offering higher-than-average rates funded by an alternative investment strategy.
The Nassau story is one of the more interesting in the modern annuity space: a relatively young carrier deliberately built to challenge established players on rate, targeting price-sensitive buyers who shop MYGA comparison tables and want the highest yield from an investment-grade insurer.
| Metric | Detail |
|---|---|
| Headquarters | Hartford, Connecticut |
| Founded | 2015 |
| Structure | Private equity-backed holding company |
| Total Assets | $5+ billion |
| AM Best Rating | A- (Excellent) |
| S&P Rating | Not rated by S&P |
| Distribution | Independent insurance agents |
Financial Strength Ratings
| Rating Agency | Rating | Meaning |
|---|---|---|
| AM Best | A- (Excellent) | Fourth-highest possible |
| S&P Global | Not rated | No S&P coverage |
| Moody’s | Not rated | No Moody’s coverage |
Nassau’s A- from AM Best meets the minimum threshold most independent advisors require for annuity carrier recommendations. However, the lack of S&P and Moody’s ratings is notable – larger, more established carriers typically carry ratings from multiple agencies, providing more cross-validation of financial strength. For buyers depositing above state guaranty association limits ($250,000 in most states), this is a relevant consideration.
Nassau Life and Annuity Products
MYGAs (Multi-Year Guaranteed Annuities)
This is Nassau’s flagship product category and the reason they appear in MYGA rate comparisons. Nassau’s Nassau Simple Annuity and Nassau MYAnnuity series routinely offer rates at or near the top of rate comparison tables, particularly for 3, 5, and 7-year terms. They have competed aggressively with established carriers like North American and Protective Life on rate, often carrying a slight premium over A+ carriers.
Minimum premium is typically $10,000. Both qualified and non-qualified versions are available. Compare Nassau’s current rates against the full market on our Best MYGA Rates page.
Fixed Annuities
Nassau offers traditional fixed annuities alongside MYGAs. Their product suite is intentionally streamlined – Nassau is not a full-service insurance company offering life insurance, FIAs, and variable products. They focus on what they do well: competitive fixed-rate accumulation products.
How Nassau Funds Above-Average Rates
Nassau generates its competitive rates through an investment strategy that emphasizes alternative assets – private credit, structured products, and other higher-yielding instruments beyond traditional investment-grade corporate bonds. This approach can generate higher returns than pure bond portfolios, enabling Nassau to offer higher credited rates while maintaining profitability.
This strategy is not unique to Nassau – several newer annuity entrants backed by alternative asset managers (including Athene/Apollo and Global Atlantic/KKR) use similar approaches. The key risk management question for buyers: does the insurer’s investment strategy remain sound through different economic environments? Nassau’s A- rating from AM Best suggests its current strategy meets the standard – but it is a consideration worth noting.
Pros and Cons
| Pros | Cons |
|---|---|
| Frequently among top MYGA rates in the market | A- AM Best – lowest investment-grade tier for annuities |
| A- AM Best meets advisor minimum threshold | Only rated by one major agency (AM Best) |
| Focused, simple product lineup | Founded in 2015 – 10-year operating history only |
| $5B+ in assets – meaningful financial base | Private equity backing creates ownership uncertainty long-term |
| Available through independent agents nationally | Smaller scale than established carriers |
Who Is Nassau Best For?
- Rate-focused buyers who want maximum yield and are comfortable with an A- carrier
- Buyers diversifying across multiple carriers – using Nassau for a portion of assets alongside A+ carriers like Athene or North American
- Buyers with deposits at or below state guaranty limits ($250,000 in most states) who can fully rely on guaranty protection as a backstop
- Shorter-term buyers (3-year MYGA) where the shorter exposure period limits the significance of carrier longevity concerns
A Note on Diversification with Nassau
Nassau’s positioning as a rate leader is a reason to include them in a comparison – it is not necessarily a reason to put all assets with them. A common approach among sophisticated buyers: place a portion of fixed annuity assets with Nassau to capture the rate premium, and the balance with A+ carriers. State guaranty associations cover up to $250,000 per insurer per state, so buyers under this threshold have additional protection regardless of carrier.
How to Buy a Nassau Annuity
Nassau products are sold exclusively through licensed independent insurance agents. To purchase:
- Work with an independent agent who carries Nassau Life and Annuity products
- Request a current rate sheet for the Nassau Simple Annuity or MYAnnuity
- Compare Nassau’s rate premium vs. A+ carriers – determine if the extra yield justifies the single-notch rating difference for your situation
- Keep deposits at or below your state’s guaranty association limit if financial strength is a concern
Customer service: 888-NASSAU1 | nassaufinancialgroup.com
Frequently Asked Questions
Is Nassau Financial Group safe?
Nassau Life and Annuity Company holds an A- (Excellent) rating from AM Best, which meets the investment-grade threshold most financial advisors require. Their $5B+ asset base and active AM Best oversight suggest financial stability. As with any annuity, keeping deposits at or below state guaranty limits ($250,000 in most states) provides an additional safety layer.
Why does Nassau offer higher MYGA rates than larger carriers?
Nassau invests in higher-yielding alternative assets – private credit and structured products – alongside traditional bonds. This investment strategy generates more income than pure investment-grade bond portfolios, enabling Nassau to offer higher credited rates while remaining profitable. This approach carries more investment complexity than traditional insurers but is not inherently unsafe when properly managed.
What is Nassau’s AM Best rating?
Nassau Life and Annuity Company holds an A- (Excellent) rating from AM Best. This is the fourth-highest possible AM Best rating and the minimum threshold most independent annuity advisors require. Nassau is not currently rated by S&P or Moody’s.
How long has Nassau Financial been in business?
Nassau Financial Group was founded in 2015, giving it approximately 10 years of operating history as of 2026. This is significantly shorter than established carriers with 50-120+ year histories. Buyers who prioritize institutional longevity should weigh this against the rate premium Nassau offers.
Sources & Citations
- AM Best, AM Best Financial Strength Ratings – A- (Excellent) rating for Nassau Life and Annuity Company
- Nassau Financial Group, About Nassau Financial Group – company history, investment strategy, and product overview
- NAIC, NAIC Consumer Information – complaint ratio and market conduct data for Nassau Life and Annuity Company
