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.
That is the short answer. The longer one is more useful, because the best carrier depends almost entirely on what you are buying the annuity to do.
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.
Here is something worth noticing before you reach the rankings. Every carrier on this list holds an AM Best rating of A− or better, so judged on that letter alone the field looks nearly interchangeable.
Comdex tells a different story. Allianz sits at 96 while Delaware Life and Security Benefit sit at 56, a 40-point spread among companies that all clear the same A− bar. Comdex blends every agency's opinion into a single percentile, which is why we weight it heavily and why two carriers holding the same AM Best letter are not carrying the same risk.
The other shift worth understanding is who is writing this business now. Private-equity-backed carriers grew from 18% of the FIA market in 2015 to 37% in 2025, and they are the reason participation rates got as competitive as they are. Whether that ownership model is a feature or a concern is a judgment call, and we flag it on each carrier below rather than deciding it for you.
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.
Compare live MYGA and FIA rates from the 90+ top annuity companies we quote.
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 snapshot of each of the top 10 carriers: financial ratings, our Editor Score, what each carrier does best, and the buyer each fits. Open "View products" on any card for our detailed product reviews.
Athene Annuity & Life
- 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 lineup
- Deepest product menu: 8 active FIAs from 5 to 14-year surrender periods
Best for: accumulation-focused buyers age 55-65 who want maximum upside without paying for an income rider they may never use. Watch for: private-equity ownership gives some conservative buyers pause, and income payout factors trail Corebridge and Allianz.
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Allianz Life of North America
- 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
- Index Lock lets you lock in a positive index value any day during the term
Best for: income-focused buyers age 60-72 who want guaranteed lifetime income from the strongest-rated carrier in this top 10. Watch for: most flagship products carry 10-year surrender periods, and rider fees of 1.05% to 1.25% reduce accumulation growth.
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Corebridge Financial
- 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
Best for: buyers age 60-70 who want the highest guaranteed lifetime income they can get. Watch for: accumulation cap rates are mid-pack, and Apollo's 2024 minority stake raises the same PE-ownership questions as Athene.
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Sammons Financial Companies
- 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 lineups under one parent
- Conservative reserve management and consistent in-force renewal rates
Best for: long-horizon income buyers age 55-65 who want an immediate boost to their income base via the premium bonus. Watch for: some flagship products carry surrender periods as long as 14 years, and bonused contracts trade lower caps for the bonus.
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American Equity Investment Life
- 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
Best for: buyers who want guaranteed lifetime income without paying a rider fee, backed by a 30-year record of fair renewal treatment. Watch for: A− is the lowest AM Best grade in this top 10, and free-rider products carry intentionally lower caps.
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Fidelity & Guaranty Life (F&G)
- Industry leader in uncapped, ETF-linked crediting strategies
- Highest participation rates on volatility-controlled indices among top 10 carriers
- Climbed one rank in 2025 as the uncapped strategy gained traction
- Backed by Fidelity National Financial, a Fortune 500 parent
Best for: buyers who want maximum upside potential through uncapped crediting. Watch for: proprietary volatility-controlled indices have less historical data than the S&P 500, and the income rider line is shallower than Allianz or Corebridge.
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Nationwide
- 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 pairing capped and uncapped indices in one contract
- Century-long operating history and very deep general account
Best for: conservative buyers who want to split allocation between a familiar S&P 500 cap strategy and an uncapped volatility-controlled index in one contract. Watch for: traditional cap rates trail Athene, and the income rider menu is narrower than Allianz.
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Global Atlantic Financial Group
- 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 with strong service support
Best for: buyers who want a 7-year surrender option (not 10) with competitive cap or participation rates. Watch for: lifetime payout factors trail Corebridge and Allianz, and brand awareness is lower than the top 5.
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Delaware Life
- 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
Best for: buyers comfortable with a newer top 10 brand who want competitive caps and a shorter 7-year surrender. Watch for: the renewal-rate track record on aggressive cap pricing is still unproven, and its Comdex (56) is the lowest in the top 10 alongside Security Benefit.
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Security Benefit Life
- 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
Best for: buyers who want exposure to engineered proprietary indices and value a long operating history. Watch for: the lowest Comdex score (56) in this top 10, and proprietary indices carry shorter back-tested histories than S&P 500-linked strategies.
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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 largely on option cost, which is driven by volatility. 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
Best Uncapped Fixed Index Annuities
Look back at the participation rates in the tables above and a pattern shows up. The strategies sitting at the top are almost all uncapped, meaning the credit is calculated as a percentage of whatever the index returns instead of stopping at a ceiling.
A capped S&P 500 strategy with an 8% cap stops at 8% no matter how strong the year was. An uncapped strategy crediting 130% participation on the same index move has no ceiling at all. That single difference explains most of the spread between the best and worst rows in those tables.
Why carriers can offer uncapped strategies
Annuity companies fund index credits by buying options, and the budget for those options is fixed. What those options cost is driven mostly by volatility.
Proprietary volatility-controlled indexes are engineered to hold volatility near a target, often 5% or 6%. Lower volatility makes the options cheaper, and cheaper options let the carrier buy more upside with the same budget. That is how a company can offer 130% participation with no cap and still price the contract profitably.
The tradeoff is real. These indexes are built to be steady rather than explosive, so you are trading the raw upside of a strong S&P 500 year for a smoother return stream the carrier can afford to leverage.
Which carriers lead on uncapped crediting
Allianz, Athene, and Corebridge have been the most consistent innovators here, and we would attribute a good share of their sales leadership to it. Each offers multiple uncapped crediting strategies built on proprietary volatility-managed indexes rather than leaning on a single capped S&P 500 option.
Athene builds on the Nasdaq FC Index, Corebridge on the Merrill Lynch Strategic Balanced Index, and Allianz on the Bloomberg US Dynamic Balance Index. All three are volatility-controlled, and all three are offered without a cap.
Having several uncapped options inside one contract matters more than any single headline participation rate. Rates reset annually, and a contract with four or five strong strategies gives you somewhere to move when one of them reprices lower.
For a full breakdown of every index available by carrier, including hypothetical historical returns by crediting method, see our comparison of stock market indexes in index annuities. To understand how participation rates, caps, and spreads actually calculate your credit, read fixed index annuity crediting methods explained.
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
What Is a Fixed Index Annuity?
A fixed index annuity is a contract with an insurance company where your credited interest is tied to the performance of a market index, most often the S&P 500, but your principal is never exposed to market losses.
You are not invested in the index. The insurance company simply uses the index as a measuring stick to decide how much interest to credit your contract each term.
That distinction is the whole product. In a year the index falls 20%, an FIA credits 0%. You lose nothing, and the following year starts from your existing balance rather than from a hole you have to climb out of first.
The tradeoff for that floor is a ceiling on the good years. The carrier limits your upside through a cap, a participation rate, or a spread, and that limit is how they pay for the downside protection they are giving you.
How Do Fixed Index Annuities Work?
Your premium goes into the insurance company's general account, which is invested largely in investment-grade bonds. The carrier keeps most of the yield from those bonds and spends a small slice of it buying options on whatever index you selected.
If the index rises, those options pay off and fund your interest credit. If the index falls, the options expire worthless, the carrier is out only the option premium, and your account value simply does not move.
Here is the mechanic in numbers, using a 7% cap as an example.
| Index return for the term | What gets credited at a 7% cap | Your $100,000 becomes |
|---|---|---|
| +18% | 7% (capped) | $107,000 |
| +5% | 5% | $105,000 |
| 0% | 0% | $100,000 |
| −22% | 0% (floor) | $100,000 |
Illustrative only. Caps, participation rates, and spreads are set by the carrier, vary by product and index, and are subject to change at each contract anniversary.
Two things in that table do most of the work over a full contract. The 0% floor in the down year is worth more than it looks, because avoiding a loss means you never spend years earning your way back to even.
The cap is the cost of that floor, and it is not fixed for life. Most contracts let the carrier reset the cap or participation rate annually, which is why renewal-rate history matters as much as the opening rate a carrier advertises.
Crediting is not limited to annual caps. Participation rates, spreads, performance triggers, and multi-year point-to-point terms all calculate credits differently, and the right one depends on the index behind it. We break all of them down in fixed index annuity crediting methods explained.
For the full product mechanics, including surrender schedules, free withdrawals, income riders, and the tax treatment of gains, read our complete fixed index annuity guide. If you are weighing an FIA against the alternatives, we also compare it directly to variable annuities, CDs, and traditional fixed annuities.
Fixed Index Annuity Crediting Methods
The crediting method is the formula the carrier uses to turn an index move into interest in your contract. Two people can own the same index in the same year and be credited very different amounts because they chose different methods.
There are four in common use. Every FIA on the market is some combination of these.
| Method | How the credit is calculated | Works best when |
|---|---|---|
| Cap | You get the index gain up to a ceiling. A 7% cap on a 12% index year credits 7%. | The index is volatile and you want a predictable, easy-to-compare number. |
| Participation rate | You get a percentage of the index gain with no ceiling. 130% participation on a 6% year credits 7.8%. | The index is volatility-controlled and moves in smaller, steadier increments. |
| Spread | The carrier keeps the first slice. A 2% spread on a 9% year credits 7%. | You expect consistently strong index years, since the spread hurts most in weak ones. |
| Performance trigger | A flat declared rate if the index is up at all, even by 0.01%. | You want certainty and expect modest but positive index years. |
Examples are illustrative. Caps, participation rates, and spreads are declared by the carrier and reset at each contract anniversary.
Annual point-to-point crediting
Annual point-to-point is the most common structure and the easiest to verify. The carrier records the index value on your contract anniversary, compares it to the value one year earlier, and applies your cap, participation rate, or spread to that single move.
Nothing that happens in between counts. The index can fall 30% mid-year and fully recover by your anniversary, and you are credited on the recovery, not the panic.
That is a genuine advantage over monthly averaging and monthly sum methods, where a single bad month can erase a good year. When a carrier offers both, annual point-to-point is usually the more predictable choice.
Which indexes pair with which method
Method and index are not independent choices. Traditional indexes like the S&P 500 are volatile, so carriers almost always cap them, and those caps are what you should compare across carriers.
Proprietary volatility-controlled indexes are engineered to move in a narrower band, which is what lets carriers offer participation rates above 100% with no cap at all. Comparing a 7% S&P 500 cap against 130% participation on a controlled index is not an apples-to-apples exercise, and the participation number always looks better than it will perform.
The indexes carrying the most FIA assets right now include the Nasdaq FC Index, BNP Paribas Multi-Asset Diversified 5, the Merrill Lynch Strategic Balanced Index, Bloomberg US Dynamic Balance, and PIMCO Tactical Balanced ER. We review each one individually and compare every index by carrier in our stock market indexes in index annuities breakdown.
For the full mechanics of each method, including monthly averaging, monthly sum, and multi-year point-to-point terms, read fixed index annuity crediting methods explained.
How to Find the Best Fixed Index Annuity Rates
There is no single best FIA rate, because the number that matters depends on which crediting method you are buying. Comparing carriers means comparing the same method on the same index.
Four things are worth checking before the headline number.
- Renewal history, not just the opening rate. A carrier can lead with a high first-year cap and cut it at every anniversary afterward. Ask what the same product renewed at over the last five years.
- The index behind the rate. A 130% participation rate on a 5% volatility-controlled index and a 7% cap on the S&P 500 can produce nearly identical credits. The participation number just reads better.
- Whether a rider fee applies. Adding an income rider typically costs 0.75% to 1.25% annually and is deducted from your accumulation value, which changes the math on every crediting method above.
- The surrender schedule attached to it. The most competitive rates usually sit on the longest surrender terms. A 10-year contract paying slightly more than a 7-year is not a better deal if you need the money in year eight.
We publish current rates by product and update them weekly. Compare live fixed index annuity cap rates, or see the full annuity rate marketplace to filter by term, state, and premium amount.
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 available only through fee-based registered investment advisory (RIA) platforms.
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.
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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 | FIA vs variable annuity
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
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.
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.
Still have questions? Call us: 855-277-8088
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
