WASHINGTON – American Council of Life Insurers President and CEO David Chavern made the following comments today on the A.M. Best report on annuity reserves:

“The A.M. Best report on annuity reserves makes no mention of how life insurers successfully managed a major recent test during the COVID pandemic, paying a record $100 billion in benefits while maintaining capital well above regulatory requirements—levels companies sustain today.

“In recent years, some life insurers have increased their holdings of private credit to meet increased demand for their products. These assets offer attractive returns and portfolio diversification while supporting long-term liabilities. However, there is no evidence that private credit is straining the life insurance industry’s stability. In fact, a recent S&P report found that companies are responsibly handling the liquidity and complexity risks associated with these assets.

“Also missing from the AM Best report is mention of the long-term, effective oversight of state regulators. Since the financial crisis, regulators through the NAIC have improved their oversight with new tools and transparency measures that ensure the industry is financially strong and mitigate risks to policyholders and the financial system.

“Between now and 2030, 20 million Americans will reach age 65, increasing the demand for the financial security guarantees. Through sound investment practices and strong regulation, life insurers are well-positioned to meet this need.”

The American Council of Life Insurers (ACLI) is the leading trade association driving public policy and advocacy on behalf of the life insurance industry. 90 million American families rely on the life insurance industry for financial protection and retirement security. ACLI’s member companies are dedicated to protecting consumers’ financial wellbeing through life insurance, annuities, retirement plans, long-term care insurance, disability income insurance, reinsurance, and dental, vision and other supplemental benefits. ACLI’s 275 member companies represent 94 percent of industry assets in the United States.