Athene is the best fixed index annuity company by sales, posting $15.0 billion in 2025 FIA premium, followed by Allianz Life at $11.7 billion, which holds the highest Comdex score (96) of any top-10 FIA carrier. MassMutual Ascend is the best fixed index annuity company for beginners thanks to its A++ (Superior) AM Best rating and simple product designs, and Nationwide offers the most competitive S&P 500 cap rates among major carriers.
Fixed index annuity sales reached $127.9 billion in 2025, making FIAs the fastest-growing annuity category for the third consecutive year, and totaled $26.8 billion in the first quarter of 2026, according to LIMRA. Private equity-backed carriers like Athene, Global Atlantic, and F&G captured a growing share of that market by offering aggressive crediting strategies and competitive income riders. This ranking evaluates the 10 best fixed index annuity companies based on financial strength, product design, income competitiveness, and real-world policyholder value.
How we rank FIA carriers
Each carrier's Editor Score is a composite of nine weighted factors, evidenced in the carrier cards below:
- Financial strength (25%): AM Best, S&P, and Moody's ratings plus the Comdex composite.
- Product breadth (15%): accumulation, income, and hybrid options; diversity of crediting methods.
- Income competitiveness (15%): roll-up features, payout rates by age, joint vs. single life options.
- Growth potential (12%): initial rates, renewal-rate integrity, historical adjustment patterns.
- Index architecture (10%): proprietary vs. traditional indexes, multi-asset and ETF-linked options.
- Liquidity & flexibility (8%): free-withdrawal provisions, waivers, RMD-friendly treatment.
- Cost transparency (5%): base fees, rider charges, and disclosure clarity in sales materials.
- Service experience (5%): e-app efficiency, turnaround times, and support quality.
- Innovation (5%): unique features, ESG crediting options, simplified processes.
Top 10 Fixed Index Annuity Companies by Sales (2025)
Below is a side-by-side look at the 10 largest FIA issuers by individual sales, sourced from LIMRA quarterly U.S. Individual Annuities Sales Survey filings.
| Rank | Carrier | 2025 Sales | Mkt Share | vs. 2024 |
|---|---|---|---|---|
| 1 | Athene Annuity & Life | $15.0B | 11.7% | no change |
| 2 | Allianz Life of North America | $11.7B | 9.1% | no change |
| 3 | Corebridge Financial | $10.0B | 7.8% | ▲ 1 |
| 4 | Sammons Financial Companies | $9.5B | 7.5% | ▼ 1 |
| 5 | American Equity Investment Life | $7.2B | 5.6% | no change |
| 6 | Fidelity & Guaranty Life | $6.7B | 5.2% | ▲ 1 |
| 7 | Nationwide | $6.1B | 4.8% | ▼ 1 |
| 8 | Global Atlantic Financial Group | $5.7B | 4.5% | no change |
| 9 | Delaware Life | $5.6B | 4.4% | ▲ 8 |
| 10 | Security Benefit Life | $5.0B | 3.9% | no change |
Source: LIMRA Secure Retirement Institute, 2025 U.S. Individual Fixed Index Annuity Sales Results. Sales figures rounded to nearest $100M.
Athene held the top spot for the third consecutive year. The largest single-year jumper was Delaware Life, climbing 8 positions to crack the top 10 for the first time.
One pattern worth flagging: private-equity-backed carriers (Athene, Corebridge, F&G, Global Atlantic, Security Benefit) now hold roughly 40% of the FIA market, up from under 20% a decade ago. The five traditional mutual or stock life insurers in the top 10 (Allianz, Sammons, American Equity, Nationwide, Delaware Life) still dominate the income-focused buyer segment.
Best Fixed Index Annuity by Category
Not every carrier excels in every area. Here are our picks for the best FIA company in each category based on current product offerings, rates, and real-world client outcomes.
| Category | Our Pick | Why |
|---|---|---|
| Best Overall | Athene | Highest participation rates in the industry, broadest index menu, and consistent renewal-rate integrity. #1 in FIA sales for 2025. |
| Best for Income | Allianz Life | Industry-leading GLWB riders with competitive withdrawal rates across all age brackets. |
| Best for Accumulation | Athene Aviator 5 | 5-year surrender, strong participation rates, top-decile cap on S&P 500 annual point-to-point. Growth without paying for income you may never use. |
| Best Financial Strength | Allianz Life | Highest Comdex score (96) among the top 10 FIA carriers. A+ (Superior) AM Best rating backed by the global Allianz SE parent. |
| Best Cap Rates | Nationwide | Consistently competitive S&P 500 cap rates and performance-trigger rates. Return-of-premium option on select products. |
| Best for Beginners | MassMutual Ascend | Simple, straightforward product designs with an A++ AM Best rating (highest possible). WealthChoice products offer clear crediting without complex fee layers. |
Category picks reflect our editorial assessment as of July 2026. Your best choice depends on your individual goals, time horizon, and risk tolerance. Request a personalized quote for recommendations specific to your situation.
Detailed Carrier Rankings: #1 Through #10
Below is a deep-dive on each of the top 10 carriers, including financial ratings, flagship FIA products, what each carrier does well, where they fall short, and the buyer profile each fits best.
Athene Annuity & Life
AM Best: A+ (Superior)West Des Moines, IA · Apollo Global Management subsidiary
Flagship product: Athene Aviator 5. Top-decile cap on S&P 500 annual point-to-point · 5-year surrender · No income rider.
Strengths
- Industry-leading participation rates on uncapped strategies, often exceeding 200%
- Broadest index menu in the FIA market: S&P 500, PIMCO Tactical Balanced, Nasdaq FC, AI Powered Global Opportunities
- Apollo-backed investment platform funds top-decile cap rates across the product lineup
- Deepest product menu: 8 active FIAs ranging from 5 to 14-year surrender periods
Considerations
- Income rider payout factors trail Corebridge and Allianz at most ages
- Newer brand identity (Apollo acquisition completed 2022) so multi-decade in-force data under the current ownership is limited
- Private-equity ownership concerns some conservative buyers
Best for: Accumulation-focused buyers age 55-65 with a 5-10 year horizon who want maximum upside without paying for an income rider they may never use.
Allianz Life of North America
AM Best: A+ (Superior)Minneapolis, MN · Allianz SE subsidiary
Flagship product: Allianz 222. Bonused income base · multi-index allocation · 10-year surrender · 150% income doubler.
Strengths
- Highest financial-strength composite of any top 10 FIA carrier (Comdex 96)
- Deepest income-rider menu in the industry, including the popular 222 income doubler
- Rare in-force changes to rider guarantees once issued
- Strong distribution training and advisor support infrastructure
Considerations
- Cap rates on accumulation-focused products typically trail Athene and F&G
- Most flagship products carry 10-year surrender periods, which limit liquidity
- Income rider fees of 1.05% to 1.25% per year reduce accumulation-value growth
Best for: Income-focused buyers age 60-72 who want a guaranteed lifetime income stream from a top-rated carrier and are comfortable with a 10-year commitment.
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Corebridge Financial
AM Best: A (Excellent)Houston, TX · formerly AIG Life & Retirement, public since 2022
Flagship product: Corebridge Power 10 Protector. Strong age-65 income payout · 10-year surrender · compounding roll-up · multi-index allocation.
Strengths
- Highest income payout factor at age 65 in the 2026 top 10 (verified across 50-state filings)
- Compounding roll-up rate, not simple interest, on income-base growth
- Strong index-strategy variety including Invesco New Economy and Dimensional US Foundations
- Legacy distribution reach from its AIG Life & Retirement roots
Considerations
- Apollo took a minority stake in 2024, raising the same PE-ownership questions as Athene
- Brand awareness still rebuilding post-AIG separation
- Cap rates on accumulation-focused FIAs are mid-pack rather than leading
Best for: Buyers age 60-70 who want the highest guaranteed lifetime income they can get and are willing to accept a slightly lower financial-strength composite than Allianz.
Sammons Financial Companies
AM Best: A+ (Superior)West Des Moines, IA · privately held · parent of North American Company and Midland National
Flagship product: North American Income Pay Pro 10. 10-year surrender · stacking roll-up income rider · strong premium bonus design.
Strengths
- Privately held with no Wall Street earnings pressure on pricing decisions
- Strong premium bonus designs that boost the income base from day one
- North American and Midland National give buyers two distinct product lineups under one parent
- Conservative reserve management and consistent in-force renewal rates
Considerations
- Some flagship products carry surrender periods as long as 14 years, limiting early liquidity
- Bonused contracts often carry lower cap rates as the trade-off for the bonus
- Slipped one position from 2024, suggesting modest market-share pressure
Best for: Long-horizon income buyers age 55-65 who do not need contract liquidity and want an immediate boost to their income base via the premium bonus.
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American Equity Investment Life
AM Best: A- (Excellent)West Des Moines, IA · Brookfield Reinsurance subsidiary since 2024
Flagship product: American Equity IncomeShield 10. 10-year surrender · built-in income rider at zero rider fee on certain crediting strategies.
Strengths
- Pioneer of the FIA category, with over 30 years of in-force renewal data
- One of the only top 10 carriers offering a built-in income rider at zero fee
- Brookfield reinsurance backing brought a balance-sheet upgrade in 2024
- Long history of treating in-force contract holders fairly on renewal rates
Considerations
- AM Best A- rating is the lowest AM Best grade in our top 10 (still secure, but a notch below peers)
- Cap rates on free-rider products are intentionally lower to fund the rider
- Brookfield acquisition fully closed in 2024, so the new ownership era is still young
Best for: Buyers who want guaranteed lifetime income but do not want to pay a rider fee, and who value a 30-year track record of fair renewal-rate treatment.
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Fidelity & Guaranty Life (F&G)
AM Best: A (Excellent)Des Moines, IA · Fidelity National Financial subsidiary
Flagship product: F&G Power Accumulator. Uncapped ETF-linked indices · participation-rate based · 7 and 10-year surrender options.
Strengths
- Industry leader in uncapped, ETF-linked crediting strategies
- Highest participation rates on volatility-controlled indices among top 10 carriers
- Climbed one rank in 2025, suggesting the uncapped strategy is gaining traction
- Backed by Fidelity National Financial, a Fortune 500 parent
Considerations
- Uncapped strategies tied to proprietary volatility-controlled indices have less historical data than the S&P 500
- Lower Comdex than the top 5 carriers
- Income rider product line is shallower than Allianz or Corebridge
Best for: Buyers who want maximum upside potential through uncapped crediting and are comfortable with less historical performance data on the underlying indices.
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Nationwide
AM Best: A+ (Superior)Columbus, OH · mutual insurance company
Flagship product: Nationwide Peak 10. Dual-strategy design pairing capped traditional and uncapped volatility-controlled indexing in the same contract · 10-year surrender.
Strengths
- Mutual ownership structure means no shareholder pressure on pricing
- Top lifetime income payouts at many age brackets among all FIA carriers
- Innovator on dual-strategy designs that pair capped and uncapped indices in one contract
- Century-long operating history and very deep general account
Considerations
- Slipped one rank in 2025 as PE-backed carriers gained share
- Cap rates on traditional crediting strategies trail Athene
- Income rider menu is narrower than Allianz
Best for: Conservative buyers who want the option to split allocation between a familiar S&P 500 cap strategy and an uncapped volatility-controlled index in one contract.
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Global Atlantic Financial Group
AM Best: A (Excellent)New York, NY · KKR subsidiary since 2021
Flagship product: Global Atlantic ForeIncome II. Income-focused FIA · multiple surrender options · built-in income rider · multi-index allocation.
Strengths
- KKR-backed investment platform funds competitive cap and participation rates
- Strong 7-year surrender option for buyers who do not want a 10-year commitment
- Cleanly designed product menu without overlapping or confusing variants
- Bank-channel distribution gives advisors strong service support
Considerations
- Lower brand awareness than the top 5 carriers
- Income rider lifetime payout factors trail Corebridge and Allianz
- KKR ownership raises the same PE-backed questions as Athene
Best for: Buyers who want a 7-year surrender option (not 10) with competitive cap or participation rates and can accept slightly lower brand recognition.
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Delaware Life
AM Best: A- (Excellent)Waltham, MA · Group 1001 affiliate
Flagship product: Delaware Life Retirement Stages Select. Multiple surrender options · multi-index allocation · optional income rider · competitive cap and participation rates.
Strengths
- Largest single-year rank jump of any top 10 carrier in 2025 (▲8 positions)
- Competitive cap rates funded by aggressive product design
- 7-year surrender period offers a liquidity advantage over 10-year-heavy peers
- Group 1001 backing provides distribution scale
Considerations
- Newest entrant to the top 10, so ranking durability into 2027 is unproven
- Lowest Comdex in the top 10 (still investment-grade, but a step below peers)
- Renewal-rate track record on aggressive cap pricing is the open question for in-force buyers
Best for: Buyers comfortable with a newer top 10 brand who want competitive cap rates and a shorter 7-year surrender, and who plan to monitor renewal rates closely.
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Security Benefit Life
AM Best: A (Excellent)Topeka, KS · Eldridge Industries affiliate
Flagship product: Security Benefit Strategic Growth Annuity. Multi-year strategy options · proprietary index allocations · 7 and 10-year surrender.
Strengths
- 130+ year operating history, the longest in the top 10
- Strong allocation choices including proprietary engineered indices
- Eldridge backing brought capital and distribution upgrades over the past 5 years
- Held its position despite intense PE-backed competition in 2025
Considerations
- Lowest Comdex score in our top 10 alongside Delaware Life
- Smaller brand footprint than mass-market peers
- Proprietary indices have shorter back-tested histories than S&P 500-linked strategies
Best for: Buyers who want exposure to engineered proprietary indices and value a long operating history, while accepting a lower financial-strength composite than the top 5.
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Top Performing Index Strategies by Carrier
When selecting a fixed index annuity, it is a good idea to choose a company that offers multiple good index annuity crediting options. Crediting rates change annually, and each year at your contract anniversary you get 30 days to review the renewal rates for each index available. These rates are priced based largely on option cost, which is driven by volatility, so rates among indexes commonly fluctuate throughout your contract, which is why it helps to have several good strategies to choose from.
Athene (A+)
| Strategy | Product | Participation/Cap | 10yr Return | 15yr | 20yr |
|---|---|---|---|---|---|
| Nasdaq FC PTP | Accumulator 10 | 130% part | 12.55% | 11.37% | 10.69% |
| Nasdaq FC PTP | Protector 7 | 125% part | 12.09% | 10.96% | 10.30% |
| Nasdaq FC PTP | Protector 7 w/ MIC+ROP | 125% part, 0.4% fee | 12.09% | 10.96% | 10.30% |
| Nasdaq FC PTP | Protector 7 w/ MIC | 125% part, 0.2% fee | 12.09% | 10.96% | 10.30% |
| Nasdaq FC PTP | Protector 5 w/ MIC+ROP | 125% part, 0.4% fee | 12.09% | 10.96% | 10.30% |
Allianz (A+)
| Strategy | Product | Participation/Cap | 10yr Return | 15yr | 20yr |
|---|---|---|---|---|---|
| S&P 500 Futures ER PTP | Accum Advantage 7 | 50% part, Index lock | 7.63% | -- | -- |
| S&P 500 Futures ER PTP | 222+ Annuity | 45% part, Index lock | 6.88% | -- | -- |
| PIMCO Tactical Balanced ER PTP | Accum Advantage 10 | 130% part, Index lock | 6.57% | 6.08% | 6.46% |
| Bloomberg US Dynamic Balance III ER PTP | Accum Advantage 7 | 125% part, Index lock | 6.36% | -- | -- |
| S&P 500 PTP Cap | Accum Advantage 7 | Cap: 8% | 6.35% | 5.81% | 5.72% |
Corebridge (A)
| Strategy | Product | Participation/Cap | 10yr Return | 15yr | 20yr |
|---|---|---|---|---|---|
| Invesco New Economy PTP | Power Select Advisory | 60% part, No surrender | 13.48% | 15.26% | 7.72% |
| Invesco New Economy PTP | Power Select Builder 10 | 55% part | 12.40% | 14.06% | 7.72% |
| Dimensional US Foundations PTP | Power Select Advisory | 190% part, No surrender | 9.28% | 11.23% | 12.26% |
| S&P 500 PTP | Power Index Advisory | 55% part, No surrender | 8.93% | 7.88% | 7.35% |
| Invesco New Economy PTP | Power Select Advisory w/ LI Plus Flex | 38% part, 1.1% fee | 8.68% | 9.90% | 7.72% |
Sammons / North American (A+)
| Strategy | Product | Participation/Cap | 10yr Return | 15yr | 20yr |
|---|---|---|---|---|---|
| Barclays Transitions 12 VC PTP | NAC Control X 10yr | 65% part | 9.92% | 9.55% | 8.93% |
| Barclays Transitions 6 VC PTP | NAC Control X 10yr | 120% part | 8.67% | 8.39% | 7.87% |
| S&P 500 Dynamic Intraday TCA PTP Cap | Max Elite Accum 5 w/ Enhanced Benefits | Cap: 12%, 0.4% fee | 8.45% | -- | -- |
| S&P 500 Dynamic Intraday TCA PTP Cap | Max Elite Accumulation 5 | Cap: 12% | 8.45% | -- | -- |
| S&P 500 Dynamic Intraday TCA PTP Cap | Max Elite Accum 7 w/ Enhanced Benefits | Cap: 11.75%, 0.4% fee | 8.30% | -- | -- |
American Equity (A-)
| Strategy | Product | Participation/Cap | 10yr Return | 15yr | 20yr |
|---|---|---|---|---|---|
| Nasdaq Premier PTP | AssetShield 10 | 60% part | 10.48% | 10.16% | 9.60% |
| Nasdaq Premier PTP | AssetShield 7 | 60% part | 10.48% | 10.16% | 9.60% |
| Nasdaq Premier PTP | AssetShield Bonus 5 Opt 1 | 58% part, 3% bonus | 10.15% | 9.83% | 9.29% |
| Nasdaq Premier PTP | IncomeShield 10 | 56% part, 1.2% fee | 9.81% | 9.51% | 8.98% |
| Nasdaq Premier PTP | AssetShield 5 | 55% part | 9.64% | 9.34% | 8.82% |
F&G (A)
| Strategy | Product | Participation/Cap | 10yr Return | 15yr | 20yr |
|---|---|---|---|---|---|
| MS US Equity Allocator PTP w/ Spread | Power Accumulator 10 | 80% (100% min) part | 9.76% | 8.68% | 8.10% |
| MS US Equity Allocator PTP w/ Spread | Accumulator Plus 10 | 75% part | 9.17% | 8.16% | 7.61% |
| MS US Equity Allocator PTP w/ Spread | Power Accumulator 7 | 75% (100% min) part | 9.17% | 8.16% | 7.61% |
| S&P 500 PTP | Secure Landing 7 | 55% part, 0.4% fee | 9.01% | 7.93% | 7.34% |
| MS US Equity Allocator PTP w/ Spread | Accelerator Plus 10 | 70% part, 10% bonus, 0.95% fee | 8.58% | 7.63% | 7.11% |
Nationwide (A+)
| Strategy | Product | Participation/Cap | 10yr Return | 15yr | 20yr |
|---|---|---|---|---|---|
| Loomis Sayles Discovery Bal Alloc PTP Opt B | New Heights Select 10 (Variation States) | 60% part, Index lock | 6.40% | 5.85% | 7.01% |
| Loomis Sayles Discovery Bal Alloc PTP Opt B | New Heights Select 8 w/ HP Select EDBR w/ Bonus | 60% part, 3% bonus, 0.8% fee | 6.40% | 5.85% | 7.01% |
| Loomis Sayles Discovery Bal Alloc PTP Opt B | New Heights Select 9 w/ HP Select EDBR w/ Bonus (VS) | 60% part, 4% bonus, 0.8% fee | 6.40% | 5.85% | 7.01% |
| Loomis Sayles Discovery Bal Alloc PTP Opt B | New Heights Select 10 w/ HP Select EDBR w/ Bonus (VS) | 60% part, 3% bonus, 0.8% fee | 6.40% | 5.85% | 7.01% |
| Loomis Sayles Discovery Bal Alloc PTP Opt B | New Heights Select 8 | 60% part, Index lock | 6.40% | 5.85% | 7.01% |
Global Atlantic (A)
| Strategy | Product | Participation/Cap | 10yr Return | 15yr | 20yr |
|---|---|---|---|---|---|
| MS Inflation Aware PTP EAS | Choice Accum II Edge 10 | 100% part, 10yr lock | 10.19% | 10.93% | -- |
| MS Inflation Aware PTP EAS | Choice Accum II Edge 5 | 100% part, 5yr lock | 10.19% | 10.93% | -- |
| MS Inflation Aware PTP EAS | Choice Accum II Edge 7 | 100% part, 7yr lock | 10.19% | 10.93% | -- |
| JP Morgan Cross-Asset Strategy PTP | ForeAccum II 5 Advisory w/ Enhanced DB | 145% part, 1.2% fee | 9.56% | 10.69% | 11.15% |
| JP Morgan Cross-Asset Strategy PTP | ForeAccum II 5 Advisory | 145% part | 9.56% | 10.69% | 11.15% |
Hypothetical backtested performance only. Returns shown are annualized rates of return based on current participation rates, caps, and spreads applied to historical index data. They do not reflect actual policyholder returns and do not guarantee future performance.
All rates are subject to change, and rider fees reduce accumulation value. Data sourced from the Annuities Genius illustration system as of March 29, 2026, based on a 63-year-old male with a $100,000 IRA premium. Delaware Life and Security Benefit do not publish comparable illustration data.
View our detailed index reviews: Nasdaq FC | BNP Paribas Multi-Asset | Bloomberg US Dynamic Balance II | PIMCO Tactical Balanced ER
Financial Strength Ratings: Top 10 FIA Carriers
Financial strength is the floor of any FIA decision. The contract guarantees are only as good as the general-account assets backing them.
The table below shows current ratings from the major agencies plus the Comdex composite, a 0-100 percentile score that converts agency ratings into a single comparable number. NAIC recommends verifying carrier ratings directly before purchasing any annuity product.
| Carrier | AM Best | S&P | Moody's | Fitch | Comdex |
|---|---|---|---|---|---|
| Allianz Life | A+ | AA | A1 | AA− | 96 |
| Nationwide | A+ | A+ | A1 | AA− | 90 |
| Athene Annuity & Life | A+ | A+ | A1 | A+ | 88 |
| Sammons (North American / Midland National) | A+ | A+ | N/R | N/R | 88 |
| Corebridge Financial | A | A+ | A2 | A+ | 82 |
| Fidelity & Guaranty Life (F&G) | A | A− | Baa1 | A− | 79 |
| Global Atlantic | A | A | A3 | A | 78 |
| American Equity | A− | A− | A3 | A− | N/A |
| Delaware Life | A− | BBB+ | A3 | N/R | 56 |
| Security Benefit | A | A− | A3 | N/R | 56 |
Ratings current as of Q1 2026. Comdex is a composite percentile ranking across rating agencies, powered by VitalSales Suite (Zinnia Distributor Solutions). View all 215 carrier ratings →
The 10-year sales trend tells a separate story. Athene and Allianz have held the #1 and #2 positions almost every year since 2018. The biggest movers between 2015 and 2025 are private-equity-backed carriers (Athene, Corebridge, F&G, Global Atlantic, Security Benefit), which collectively grew from 18% to 37% of the FIA market over the period.
Carriers that exited the top 10 over those years include Lincoln Financial, Symetra, and Pacific Life, all of whom shifted product focus toward variable annuities and registered index-linked annuities (RILAs). For the year-by-year breakdown, see our FIA Sales Leaders 2015-2025 report.
FIA Carrier Sales Trends (2015-2025)
Select a preset view or toggle individual carriers by clicking the legend. Source: LIMRA U.S. Individual Annuities Sales Survey.
Data: LIMRA · sales in $millions · 2020 not available · See full FIA sales analysis
How Much Does a Fixed Index Annuity Cost?
Cost on an FIA is split across four components, and most buyers underestimate two of them. The base contract is essentially free, but riders and surrender schedules carry costs that compound over the life of the contract.
Base Contract: Typically $0 in Annual Fees
The carrier earns its margin from the spread between general-account investment yield and the index credit paid out, not from contract fees. Unlike variable annuities, there is no mortality and expense charge.
Income Riders: 0.75% to 1.25% Per Year
Optional guaranteed lifetime income riders charge a fee deducted annually from the accumulation value. Allianz, Corebridge, and Sammons all sit near the top of this range. American Equity offers select riders at zero fee.
Fee-Based FIA Strategies: 1.00% to 1.50% Per Year
Some carriers offer fee-based crediting options that trade a higher cap or participation rate for an explicit fee. These are typically only available through fiduciary advisors.
Surrender Charges: 7 to 14 Years, Declining to Zero
Early withdrawals above the free-withdrawal corridor (usually 10% per year) trigger a surrender charge that starts at 8-12% and declines to zero by the end of the surrender schedule. This is the biggest hidden cost for buyers who do not plan to hold to maturity.
The takeaway: the cap and participation rate alone are not the whole price. Renewal-rate consistency over the life of the contract is the bigger driver of net return.
How to Choose the Right Fixed Index Annuity Company
Picking the right FIA carrier is a five-step process. The nine factors in the methodology box near the top of this page are how we score carriers in aggregate. The five steps below are how an individual buyer should sequence the decision.
1. Set the financial-strength floor
Decide your minimum acceptable financial-strength composite and refuse to go below it. Our recommendation: AM Best A- or higher. That cutoff still leaves all 10 carriers above in the running but removes most of the second-tier names that compete on cap rate alone.
2. Match the product to your goal, not the headline rate
If you want guaranteed lifetime income, rank carriers by income payout factor at your start age. If you want pure accumulation, rank by cap rate plus renewal-rate history. The biggest mistake is buying an income-rider product when you actually wanted accumulation, because the rider fee silently drags down accumulation value for years.
3. Compare crediting methods, not just cap rates
A 10% cap on annual point-to-point is not the same product as a 60% participation rate on a 2-year volatility-controlled strategy. The latter could deliver more, less, or the same depending on the index path. Our FIA crediting methods guide walks through how each one calculates credit and which buyer profile it fits.
4. Understand the surrender schedule
The surrender period is the contract's mandatory hold period. A 10-year FIA is a 10-year asset. If there is any chance you need the principal sooner, choose a 5 or 7-year product (Athene Aviator 5, Delaware Life Retirement Stages 7, Global Atlantic ForeSight 7) and accept a slightly lower cap rate in trade.
5. Review the renewal-rate history before signing
Cap rates and participation rates reset annually after year 1. Some carriers honor in-force contracts at near-original terms; others slash renewal rates aggressively.
Athene, Allianz, Sammons, American Equity, and Nationwide have the most consistent in-force track records in our top 10. Ask your licensed agent for the carrier's renewal-rate history before you sign anything.
Fixed Index Annuity vs MYGA vs Variable Annuity
Not sure which annuity type fits your goals? Buyers shopping FIAs are usually also looking at multi-year guaranteed annuities (MYGAs) and variable annuities. Here is a quick comparison of the three.
| Feature | Fixed Index Annuity | MYGA | Variable Annuity |
|---|---|---|---|
| Risk level | Low (0% floor) | None (guaranteed rate) | High (full market risk) |
| Return type | Index-linked (capped or participation) | Fixed guaranteed rate | Market returns (subaccounts) |
| Annual fees | $0 base; rider 0.75-1.25% | $0 | 2-4% all-in |
| Principal protection | Yes (0% floor) | Yes (guaranteed) | No (subaccount risk) |
| Upside potential | Moderate to high | Fixed (known at purchase) | Unlimited |
| Income riders | Yes (GLWB, optional) | No | Yes (GLWB/GMIB, optional) |
| Typical surrender | 5-14 years | 2-10 years | 4-10 years |
| Best for | Growth potential with a floor | Highest guaranteed yield | Tax-deferred equity exposure |
Compare current rates: FIA cap rates | MYGA rates | Fixed annuity vs CD
Browse Fixed Index Annuity Carrier Reviews
We publish detailed reviews of every major FIA carrier in the U.S. market. Each review covers financial strength ratings, product lineups, pros and cons, and who the carrier is best suited for.
View the complete directory: All Annuity Insurance Company Reviews
Frequently Asked Questions
What is the best fixed index annuity company?
There is no single "best" company for every buyer. Athene leads for accumulation-focused strategies with the highest participation rates and broadest index menu. Allianz Life is the strongest choice for income riders and lifetime withdrawal benefits.
MassMutual Ascend carries the highest financial strength rating (A++ from AM Best) for clients who prioritize carrier safety above all else. The right company depends on whether your primary goal is growth, income, or security.
Are fixed index annuities safe?
Yes. Your principal is protected by a 0% floor, meaning your account value cannot decrease due to index losses in any crediting period. This protection is backed by the financial strength of the issuing insurance carrier and further supported by your state's guaranty association.
That said, "safe" does not mean "risk-free." Rider fees can reduce your accumulation value over time, and early withdrawals may trigger surrender charges.
How much do fixed index annuities cost?
Most FIA base contracts carry no explicit annual fees. The insurance company earns its margin through the spread between what it earns on its general account and what it credits to your policy.
If you add an income rider, expect an annual charge of 0.75% to 1.25% of your benefit base. Fee-based FIA strategies designed for RIA channels typically charge 1.00% to 1.50% annually but offer higher participation rates and no surrender charges in return.
What is the average return on a fixed index annuity?
Backtested and historical returns on FIAs typically fall in the 4% to 10% annual range, depending on the index, crediting method, and market conditions during the policy term. These returns are not guaranteed. Actual credited interest depends on index performance, caps, participation rates, and spreads set by the carrier.
In flat or negative market years, the 0% floor protects your principal, but you earn nothing. Over a full market cycle, most FIA owners see returns between CDs and direct equity exposure.
Can I lose money in a fixed index annuity?
Your account value cannot decrease from index losses because of the 0% floor built into every FIA contract. However, there are two scenarios where your cash value could decline.
First, income rider fees (typically 0.75% to 1.25% per year) are deducted from your accumulation value, which can reduce it over time if index credits do not exceed the fee. Second, if you withdraw funds during the surrender period, the carrier will apply a surrender charge that can reduce your payout below what you originally deposited.
What are the disadvantages of fixed index annuities?
The main drawbacks are surrender charges that lock up your money for 7-10 years, caps and participation rates that limit your upside in strong markets, and complexity that makes comparing products difficult. Optional income rider fees (0.75-1.25% per year) also reduce your accumulation value over time. FIAs are best suited for money you will not need for at least 7 years.
How are fixed index annuities taxed?
FIA gains grow tax-deferred. When you withdraw, the gain portion is taxed as ordinary income (not capital gains). For qualified FIAs (IRA/401k), the entire withdrawal is taxable.
For non-qualified FIAs, only the gain above your cost basis is taxed. Withdrawals before age 59 1/2 may also incur a 10% IRS early-withdrawal penalty.
Who should not buy a fixed index annuity?
FIAs are not a good fit if you need full access to your money within 7 years, want unlimited market upside with no caps, are under 40 with decades until retirement, or cannot afford to have any portion of your savings in a surrender-charge period. They are also unnecessary inside a Roth IRA if your primary goal is tax-free growth, since simpler investments achieve the same tax benefit without surrender restrictions.
How do I choose between fixed index annuity companies?
Focus on five factors: financial strength (AM Best A- or higher), current crediting rates and renewal history, product features (free withdrawals, waivers, death benefit), income rider competitiveness (if you need guaranteed income), and the specific indexes available. Compare at least 3-4 carriers before purchasing. Request a personalized quote to see side-by-side comparisons for your specific situation.
Sources & Methodology
- Annuities Genius illustration system
- AM Best, S&P Global, Moody's & Fitch financial strength ratings
- AnnuityRateWatch
- Carrier rate sheets, product guides & company websites
Rankings reflect our editorial assessment as of July 2026 and are educational, not individualized financial advice. Rates, caps, and participation rates change frequently. Always verify current terms and a carrier's financial strength before purchasing.
Related reading: What Is a Fixed Index Annuity? | FIA Crediting Methods Explained | How Income Riders Work | Current FIA Rates | Fixed Annuity Guide | Request a Free Quote
