Published April 15, 2026 by the AnnuityJournal Editorial Team.
WASHINGTON, D.C. – U.S. life and annuity insurers held aggregate risk-based capital (RBC) ratios well above regulatory minimums at the end of 2025, according to industry data compiled by the American Council of Life Insurers (ACLI) and the National Association of Insurance Commissioners (NAIC). The industry’s capital cushion is at one of its strongest points in the past decade, even as record annuity sales and large pension risk transfer transactions have stretched balance sheets at the largest carriers.
Industry-wide total capital and surplus reached approximately $560 billion at year-end 2025, up from $512 billion at the end of 2022. The aggregate company action level RBC ratio, which measures capital against regulatory requirements, sat near 400%, well above the 200% level that triggers regulatory action.
What RBC Ratios Actually Measure
Risk-based capital is the NAIC-designed framework that sets minimum capital requirements for insurers based on the specific risks each company takes, including asset risk, insurance risk, interest rate risk, and business risk. A 100% RBC ratio equals the company action level, where regulators begin requiring corrective plans. The industry average of roughly 400% means most life and annuity insurers carry roughly four times the minimum regulatory capital.
For annuity buyers, RBC is a useful second check beyond AM Best, S&P, and Moody’s credit ratings. A strong RBC ratio signals that the carrier has the capital reserves to weather severe economic stress scenarios. Our are annuities safe? guide walks through how these metrics layer together.
Capital by Carrier Size Tier
The largest U.S. life insurers hold the majority of industry capital. The top 10 carriers by total admitted assets include Prudential Financial, MetLife, New York Life, MassMutual, Northwestern Mutual, Athene, Lincoln National, Corebridge Financial, TIAA, and Equitable Holdings. Combined, the top 10 represent roughly 55% of industry admitted assets.
Mid-tier A-rated carriers and smaller specialty insurers each hold meaningfully lower absolute capital but often operate at similar or stronger RBC ratios because their risk exposures are narrower. Capital adequacy is a function of risk relative to surplus, not simply total dollars held.
Alternative-Credit Carriers Under Regulatory Attention
Large PE-backed carriers like Athene (Apollo) and Global Atlantic (KKR) have grown substantially in the past five years and now represent a larger share of industry annuity assets. Regulators at the NAIC and state insurance departments have intensified their review of these carriers’ asset portfolios, particularly their use of privately placed structured credit, collateralized loan obligations, and offshore reinsurance arrangements.
The carriers themselves argue that alternative credit exposures are conservatively underwritten and properly capitalized, and their RBC ratios continue to sit above the regulated minimums. The regulatory review is ongoing and has resulted in updated disclosure requirements that take effect in 2026.
State Guaranty Associations Add a Second Layer
Beyond each insurer’s own claims-paying ability, all 50 state guaranty associations provide a backup coverage layer for policyholders of insolvent insurers. The standard coverage is $250,000 per insurer per person for annuity contract value, with variations by state. For buyers with larger deposits, splitting premium across two or more unrelated carriers is a common way to increase aggregate guaranty protection.
For state-by-state coverage limits, see our state guaranty association guide.
What This Means for Annuity Buyers
The headline takeaway for buyers is that the U.S. life and annuity industry ended 2025 with a historically strong capital base. That does not mean any individual insolvency is impossible; company-specific risks still warrant review of carrier ratings and concentration. But at an industry level, the aggregate picture is one of significant financial strength.
For buyers evaluating a specific carrier, the practical sequence is: (1) confirm an A-rated or higher AM Best rating, (2) review at least two additional rating agencies (S&P, Moody’s, Fitch), (3) check the carrier’s RBC ratio if published, and (4) verify state guaranty association coverage limits. Our carrier review pages include ratings tables for most major issuers; see our carrier reviews hub for the full list.
Related Reading
- Are Annuities Safe?
- State Guaranty Association Coverage
- Best Annuity Companies of 2026
- All Carrier Reviews
Sources: American Council of Life Insurers (ACLI) 2025 Year-End Fact Book; NAIC aggregate industry capital data; individual carrier statutory filings.
