ACLI Responds to A.M. Best Report on Annuity Reserves

Life insurers successfully managed pandemic, paid record benefits while maintaining capital levels

Apr. 10, 2026 at 10:01pm

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A dramatic close-up of intricate, heavy banking machinery in shades of steel, bronze, and chrome, representing the complex, powerful nature of the financial industry.The life insurance industry's ability to maintain financial stability and pay record benefits during the pandemic underscores the resilience of the broader financial system.Washington Today

The American Council of Life Insurers (ACLI) has responded to a recent A.M. Best report on annuity reserves, stating that the report fails to mention how life insurers successfully navigated the COVID-19 pandemic, paying a record $100 billion in benefits while maintaining capital well above regulatory requirements.

Why it matters

The ACLI's response highlights the resilience and financial strength of the life insurance industry, which plays a crucial role in providing financial security and protection for millions of Americans. The industry's ability to weather the pandemic and continue delivering on its commitments is an important story that provides reassurance to policyholders and the broader public.

The details

According to the ACLI, the A.M. Best report on annuity reserves does not acknowledge the life insurance industry's impressive performance during the COVID-19 pandemic. Despite the significant challenges posed by the crisis, life insurers were able to pay a record $100 billion in benefits while maintaining capital levels well above regulatory requirements.

  • The A.M. Best report on annuity reserves was published recently.

The players

American Council of Life Insurers (ACLI)

A trade association representing the life insurance industry in the United States.

David Chavern

President and CEO of the American Council of Life Insurers.

A.M. Best

A credit rating agency that specializes in the insurance industry.

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What they’re saying

“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.”

— David Chavern, President and CEO, American Council of Life Insurers

The takeaway

The ACLI's response highlights the resilience and financial strength of the life insurance industry, which was able to navigate the challenges of the COVID-19 pandemic and continue delivering on its commitments to policyholders. This is an important story that provides reassurance about the industry's ability to weather economic storms and maintain its critical role in providing financial security and protection.