American Fidelity at a Glance
| Detail | Information |
|---|---|
| Full Legal Name | American Fidelity Assurance Company |
| Founded | 1960 (Oklahoma City, Oklahoma) |
| Headquarters | Oklahoma City, Oklahoma |
| Ownership | Private – Cameron family owned; not mutual, not publicly traded |
| AM Best Rating | A+ (Superior) – maintained continuously since 1982 |
| Primary Products | 403(b) and 457(b) fixed annuities and variable annuities for public sector/education |
| Distribution | Employer-direct only – NOT through independent agents or IMOs |
| Primary Market | Public K-12 educators, public employees, healthcare workers |
American Fidelity’s Financial Strength and Background
American Fidelity was founded in 1960 in Oklahoma City by the Cameron family, who retain private ownership today. This structure – private, family-owned, no public market pressure – has contributed to the company’s consistent financial discipline. The A+ AM Best rating has been maintained for over 40 consecutive years, which places American Fidelity among a small number of U.S. insurers that have held that rating for four-plus decades without interruption.
The company’s focus is narrow by design. American Fidelity built its business around the specific needs of teachers and public employees who have access to 403(b) and 457(b) tax-sheltered plans through their employers. Their products, sales approach, and service model are designed for that audience. Verify current ratings at ambest.com and americanfidelity.com.
One factor worth noting: because American Fidelity operates through employer channels only, they do not compete in the open market where independent agents can compare their rates against other carriers. This is different from carriers like Athene or MassMutual Ascend, whose rates appear on aggregator platforms. Access to American Fidelity requires an eligible employer offering their plan.
What Annuity Products Does American Fidelity Offer?
- AFchoice 403(b) Deferred Annuity – Flexible premium deferred annuity for public school employees and eligible non-profit workers. Contributions made through employer payroll deduction. Tax-deferred growth with guaranteed interest options. Available in school districts and healthcare organizations that have an American Fidelity plan in place.
- 457(b) Deferred Compensation Annuity – Similar structure for state and local government employees. Different contribution limits and distribution rules than 403(b) plans. Government employees deferring income pre-tax.
- AF Advantage Variable Annuity – Variable subaccount options within the 403(b) or 457(b) structure. Securities product requiring licensed financial professional.
- Guaranteed Interest Accounts – Fixed-rate crediting options within their annuity contracts for participants who want principal protection.
Note: American Fidelity products are not available to retail buyers through independent agents or IMO platforms. Access is limited to eligible employer-sponsored plans.
Who Is American Fidelity Best For?
- K-12 public school teachers and staff whose district offers American Fidelity 403(b) enrollment.
- State and local government employees with access to an American Fidelity 457(b) plan through their agency.
- Healthcare workers at eligible non-profit hospitals and systems that have contracted with American Fidelity.
- Public sector employees who value A+ carrier stability for their supplemental retirement savings.
American Fidelity is not an option for retail buyers who do not have access through a qualifying employer plan. For comparable 403(b) and 457(b) products, educators often have access to TIAA, Fidelity, or Vanguard as alternative plan providers depending on their employer’s approved vendor list.
American Fidelity Pros and Cons
Pros
- A+ AM Best – 40+ consecutive years of maintaining this rating
- Private, family-owned stability – no quarterly earnings pressure, no shareholder obligations
- Specialized expertise in the 403(b)/457(b) market for educators and public employees
- No NAIC complaint history of note – strong customer service reputation
- Flexible premium design – payroll deduction contributions fit how teachers get paid
Cons
- Not available through independent agents or IMOs – access requires employer plan
- Rates not posted publicly – crediting rates require contact with a company representative through your employer
- Limited product range compared to full-service annuity carriers
- Geographic and employer access restrictions – not universally available even within the public sector
Other Annuity Companies to Consider
- TIAA Annuity Review
- Nationwide Annuity Review
- MassMutual Ascend Annuity Review
- Browse All Annuity Insurance Companies
Compare today’s rates with our live rate table or request a personalized quote.
Frequently Asked Questions
Can I buy an American Fidelity annuity if I am not a teacher?
American Fidelity annuities are available to employees of qualifying public school districts, government agencies, and eligible non-profit healthcare organizations. If your employer does not have an American Fidelity plan in place, you cannot purchase their products. Retail buyers should compare MYGA rates from independent-channel carriers using our rate comparison tool.
How does a 403(b) annuity differ from a regular fixed annuity?
A 403(b) annuity is held within a tax-qualified retirement account available to public school employees and certain non-profits. Contributions are pre-tax (like a 401k), reducing your taxable income today. A standard fixed annuity or MYGA is typically purchased with after-tax dollars and grows tax-deferred. The tax treatment at withdrawal differs. See our guide on how annuities are taxed for a full comparison.
What happens to my American Fidelity annuity if I leave my job?
Your accumulated value in an American Fidelity 403(b) or 457(b) annuity belongs to you. When you leave employment, you can typically roll the balance to an IRA, roll it to a new employer's plan if eligible, or leave it in place to continue growing tax-deferred. Contact American Fidelity directly at americanfidelity.com for specifics on your contract options.
