OLDWICK, N.J.–(BUSINESS WIRE)– AM Best has downgraded the Financial Strength Rating (FSR) to A- (Excellent) from A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICRs) to “a-” (Excellent) from “a” (Excellent) of American Southern Insurance Company (Topeka, KS), and its wholly owned and 100% reinsured subsidiary, American Safety Insurance Company (collectively referred to as American Southern Group). Concurrently, AM Best has affirmed the Long-Term ICR of “bbb-” (Good) of the publicly traded parent company, Atlantic American Corporation (Atlantic American) [NASDAQ: AAME]. The outlook of these Credit Ratings (ratings) has been revised to negative from stable. Additionally, AM Best has affirmed the FSR of A- (Excellent) and the Long-Term ICRs of “a-” (Excellent) of Bankers Fidelity Life Insurance Company, and its wholly owned and 100% reinsured subsidiaries, Bankers Fidelity Assurance Company and Atlantic Capital Life Assurance Company (collectively referred to as Bankers Fidelity Life Insurance Group [BFLIG]). The outlook of these ratings is stable. All companies are domiciled in Atlanta, GA, unless otherwise specified.
The ratings of American Southern Group reflect its balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).
The rating downgrades reflect the revision of American Southern Group’s balance sheet strength assessment to strong from very strong, following a significant deterioration in its risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), as well as capital modeling and stress-testing capabilities that continue to evolve relative to the group’s evolving risk profile. The decline in risk-adjusted capitalization to the strong level from strongest was driven by reserve strengthening and adverse reserve development in the group’s commercial auto liability line of business. Management has indicated that additional reserve strengthening is expected in 2026. In addition, the group’s largest account represents a significant concentration and lacks the structural reinsurance or retrospective premium protections present on other major accounts. Capital management and financial flexibility will remain important considerations in AM Best’s prospective assessment of American Southern Group.
The negative outlooks reflect pressure on American Southern Group’s risk-adjusted capitalization from reserve strengthening and adverse reserve development in commercial auto liability, as well as increased pressure on ERM given the group’s evolving risk profile and ongoing capital management considerations.
The ratings of BFLIG reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate ERM.
BFLIG maintains a very strong level of risk-adjusted capitalization, as measured by BCAR, for its insurance, investment and business risks. Balance sheet strength is enhanced by access to an undrawn line of credit and adequate liquidity metrics. Despite volatile underwriting results over the last five years, the group has reported varying net income annually except for 2021. Operating performance has improved during this period due to rate increases, more stringent Medicare supplement underwriting and business diversification to lower risk ancillary health and life products. A new charter has enabled it to medically underwrite Medicare supplement policies, which has driven generally better underwriting performance in this segment. BFLIG’s neutral business profile reflects the continued diversification of its business through growth of ancillary health and life revenue.
AM Best notes that Atlantic American filed a Form 12b-25 notification with the SEC regarding its 2025 Form 10-K, citing additional time needed to complete the adoption of ASU 2018-12 and related audit procedures; the company stated in the filing that it does not anticipate a significant change in results of operations from the corresponding prior-year period.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
Federated Mutual Insurance Company hosted its 122nd Annual Meeting of Policyholders on Tuesday, April 21, 2026, in Owatonna, Minnesota.
Chairman, President and CEO Nicholas Lower presided over the meeting, reflecting on Federated’s continued growth and commitment to its policyholders, employees, association partners, and the communities where its employees live and work. He began by thanking the company’s more than 47,000 policyholders.
“Every day, we are privileged to protect the future of American business owners who drive progress, create opportunities, and strengthen the communities they serve,” said Lower. “For 122 years, they have trusted Federated Insurance to provide tailored coverage, equitable premiums, and proactive risk management solutions. It is an honor to partner with them. We remain steadfast in our mission to meet their evolving needs and enhance their success.”
Lower credited Federated’s more than 3,000 employees for the company’s strong 2025 financial results. “World-class organizations operate with excellence, a client-focused mission, forward-thinking strategies, and superior financial results. By this definition, Federated® stands among the elite. Yet, what truly sets us apart is our world-class people. It’s their dedication that drives our operational achievement, fosters collaboration, and ensures we deliver superior value to our policyholders, who deserve only the best,” he said.
Company highlights from 2025 include:
Total assets, $15.0 billion; total invested assets, $13.3 billion; policyholders’ surplus, $6.6 billion; total property and casualty and life premium, $3.5 billion; property and casualty net premium, $3.059 billion; and total property and casualty accounts is more than 47,000.
Federated Life Insurance Company saw a total collected premium of $338 million, $3.05 billion in assets, and $817 million in capital and surplus.
Federated was rated A+ (Superior) by insurance industry analyst A.M. Best® for the 27th consecutive year.
Federated was named to the 2025 Ward’s 50® group of top performers for property-casualty and life-health.
The 2025 Federated Challenge® raised a record-breaking $4,945,000 for Minnesota’s three Big Brothers Big Sisters® agencies and Big Brothers Big Sisters of America®. Since 2005, the Federated Challenge has raised more than $62 million for youth mentoring.
Federated was named to the 2025 National Corporate Mentoring Honor Roll in recognition of outstanding support of youth mentoring.
An impressive $451,793 was raised through employee donations and Federated’s corporate gift during the United Way® Workplace Campaign. These funds benefit United Way organizations across the country.
As part of Federated’s 2025 employee gift matching program, employees supported more than 200 charitable programs across the nation, resulting in $130,000 in matched contributions.
Federated earned a place on both the Forbes America’s Best-in-State Employers 2025 and Newsweek Most Admired Workplaces 2026 lists for its exceptional workplace environment.
Federated partnered with Wallin Education Partners to award five local students from Owatonna High School with Wallin Scholarships in 2025. This was part of the company’s five-year commitment to supporting 25 students with multi-year scholarships for an investment total of $575,000.
Meeting proceedings included the re-election of current Board Members Steven Clark, James Giesler, Sarah Person, and Camelia Clarke for additional three-year terms.
“We are in a strong financial position,” Lower said. “As a mutual company, this financial strength allows us to reinvest in products, risk management services, innovative technology, and our Direct Client Service Model, which enables us to provide face-to-face service to clients across the country. Our future, our clients’ future, and our association partners’ future have never been brighter.”
Digital nomadism and cross-border living is more popular than ever before.
As a result, advisors are increasingly asked how to structure life insurance for those whose careers, families, and finances span multiple countries.
“The key is designing coverage that remains valid, tax-efficient, and flexible no matter where life takes them,” said Bruce Parker, president at Pan-American Life Insurance Group.
With a bit of knowledge and creativity, advisors can ensure their global clients choose well-structured, U.S.-issued policies that are both portable and adaptable in the long run.
Underwriting considerations
Clients who move frequently or live abroad may have different underwriting considerations than those who reside in the U.S. full-time.
As an advisor, it’s essential to understand how insurers usually assess risk for this demographic. In most cases, they focus on the following:
Residency status and long-term intent
Underwriters look for stability and ties. “This means they prefer a home address, employment status, and assets,” Parker said.
Country of residence and duration
Many carriers classify countries into risk tiers. Longer stays in higher-risk locations may lead to postponements, extra premium charges, exclusions or riders, or in some cases, denials.
Access to medical care and records
Routine care outside of the United States can complicate medical records retrieval. According to Parker, some carriers prefer exams and records sourced in the U.S.
Occupation and activities overlap
Being a “digital nomad” can imply higher-risk activities, such as adventure sports or motorcycle riding. Therefore, underwriters might ask follow-up questions.
Sanctions and regulatory constraints
“Even if the insured is otherwise insurable, there may be restrictions on certain countries for compliance reasons,” Parker explained.
Tax implications to note
Globally mobile clients should work closely with tax advisors to ensure all scenarios are considered before they purchase and fund life insurance.
According to Parker, U.S.-issued policies generally provide the most consistent tax treatment for U.S. taxpayers who are living abroad. Foreign-issue policies, on the other hand, can trigger taxation and complex reporting requirements.
“As with any policy, the cash value, ownership structure, and funding sources can all affect taxation,” Parker added.
Advisors might want to form relationships with experienced tax professionals they can recommend to clients.
How to support these clients
For digital nomads and cross-border clients, the key is to position life insurance as a flexible platform rather than a static product.
“Make it clear that life insurance is part of a long-term strategy and not tied to a single country or job. It’s designed for change, with periodic reviews as residency, income, and family circumstances evolve,” Parker explained.
In addition, prioritize U.S.-issued policies with global portability unless there is a compelling reason to do otherwise. While some international or “expat” policies exist, they often lack U.S. tax advantages and create additional reporting and compliance burdens.
While every global client has their own unique situation and needs, here are a few options and strategies that might benefit them:
U.S.-issued term life for short to midterm needs
”U.S.-issued term policies are generally portable once in force, provided premiums are paid, and there are no restrictions on the country of residence,” Parker said.
Term life support income replacement, mortgage protection, or business obligations while a client is early in their career or in a transitional phase abroad.
Be sure to frame term life as a simple, cost-effective foundation that travels with the client, even if their location changes.
Permanent life insurance for long-term global plans
Permanent policies offer lifetime coverage, tax-deferred cash value growth, and flexibility for estate planning, wealth transfer, or supplemental retirement income.
They’re ideal for clients’ long-term global careers, cross-border families, or legacy goals.
“Emphasize flexibility over optimization. Design policies conservatively to accommodate changing residency, income sources, and tax regimes,” Parker explained.
Riders
There are a number of life insurance riders that can be useful for clients who live abroad, experts say.
Flexible premium structures, for example, are particularly important for those with variable or foreign currency income.
Convertibility in term policies allows clients to secure permanent coverage later, even if underwriting would be more difficult once living abroad.
“Critical illness riders, which are one-time payments for any purpose, such as medical costs, caregiving, etc. could be also be valuable for someone diagnosed with a covered serious medical condition in a different country,” Parker noted.
Prudential of Japan is not ready to resume sales after a 90-day ban following widespread misconduct, Prudential Financial CEO Andy Sullivan said Tuesday. The insurer is extending the sales moratorium for another 180 days, for a total financial impact of about $1 billion.
The extended sales ban “reflects Prudential’s conclusion that the scope and complexity of the required changes within POJ are greater than previously anticipated and will take additional time to design and implement,” Prudential said in a news release.
These include the operational, governance, organizational, and related changes necessary to resume sales. Prudential also initiated an independent, third-party review of POJ’s management system earlier this year as part of its governance process, the release said. That review is ongoing and is expected to take several months to complete.
Sullivan held an impromptu conference call with Wall Street analysts to quell investor fears.
“It is clear to my leadership team and me that POJ requires meaningful transformation and further oversight through the reset now underway,” Sullivan said. “We are addressing the issues we have identified so far and repositioning the business for the future.”
Prudential expects a $525 to $575 million impact on 2026 pretax adjusted operating income, and another $400 to $450 million impact on pre tax adjusted operating income in 2027, Sullivan said.
The financial loss reflects the annualized impact of surrenders and the suspension of new sales activity for most of 2026, as well as the cost of restarting new sales in 2027.
“While we expect the recovery of sales to take time as we reset the operating model, POJ has strong capabilities, a well-established brand and a long-standing presence in the market,” Sullivan said. “We believe the business will emerge better positioned to serve consumers over the long term.”
POJ serves 2.2 million customers with life and annuity products, supported by roughly 4,200 life planners across Japan, Sullivan said.
CEO shuffle
Misconduct issues, including inappropriate investment solicitations, within the Prudential of Japan broke publicly in January. Prudential moved swiftly to install Hiromitsu Tokumaru as president and CEO of POJ, replacing Kan Mabara, who left the company on Feb. 1.
Tokumaru is the former president and CEO of Prudential Gibraltar Financial Life.
The 90-day sales suspension was expected to have an anticipated bottom-line impact of $300 to $350 million, said Yanela C. Frias, chief financial officer, during Prudential’s February earnings call.
POJ expects to resume sales on Nov. 6, Frias said Tuesday. For every month that the restart date is delayed, the estimated cost to the insurer is $50 million to $60 million, she added.
“We are focused on restoring the trust of our consumers and society in Japan for sustained, measurable change,” she said. “Japan is an important market for Prudential, and we are determined to regain the confidence built over decades.”
POJ announced actions to address the misconduct, including measures to reimburse impacted customers, restructure employee incentive compensation, and strengthen oversight of sales practices, governance, and risk management. The plans also include enhanced education, training, and recruitment standards for POJ employees.
Prudential’s new compensation framework for POJ has four components, Sullivan explained:
Establishes a minimum base pay
Extends commission payments over multiple years
Adds a stronger component for the persistence of business
Strengthens the compliance-related accountabilities
“We really think this is a winning structure for everybody,” Sullivan said, “for our employees, for our company, for the customers. You shouldn’t imply that it’s a meaningful change necessarily, in the total level of compensation, but it certainly is a major change in the way that we incentivize our life planners.”
OLDWICK, N.J.–(BUSINESS WIRE)– AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a” (Excellent) of The Wawanesa Mutual Insurance Company(Wawanesa Mutual). At the same time, AM Best has affirmed the FSR of A (Excellent) and the Long-Term ICR of “a” (Excellent) of Wawanesa Life Insurance Company (Wawanesa Life). The outlook of these Credit Ratings (ratings) is stable. Both companies are domiciled in Winnipeg, Manitoba, Canada.
The ratings of Wawanesa Mutual reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).
Wawanesa Mutual’s balance sheet strength is underpinned by its risk-adjusted capitalization, which was at the strongest level at year-end 2025, as measured by Best’s Capital Adequacy Ratio (BCAR). Wawanesa Mutual’s risk-adjusted capitalization reflects growth in its equity over the long-term. The company’s balance sheet strength is further supported by its conservative underwriting leverage, sound liquidity and a comprehensive reinsurance program. Offsetting balance sheet strength factors include areas of adverse reserve development and elevated common stock leverage. Wawanesa Mutual has a track record of adequate operating performance.
Viewed over a five-year period, Wawanesa Mutual has demonstrated improvement in underwriting, reporting four years of underwriting profitability. Underwriting performance in 2025 benefited from improvements in personal auto with positive trends in Ontario and Quebec. The underwriting performance turnaround in 2025 also reflects a series of targeted initiatives to improve claims and pricing. The company introduced a dedicated claims insights team and fraud analytics team, implemented management actions and process changes to stabilize reserve volatility, incorporated a wildfire grading index, and continued to invest heavily in pricing sophistication.
The ratings of Wawanesa Life reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate ERM.
Wawanesa Life’s balance sheet strength is reflective of the strongest level of risk-adjusted capitalization, as measured by BCAR, and supportive of its business, insurance and investment risks due to organic earnings growth, low use of reinsurance, and overall good credit quality of invested assets. Wawanesa Life has reported net income in four of the past five years; however, there is variability by business segment with individual life business providing stable, profitable earnings, while the group business has been more volatile. Performance differences between segments are notable with the individual products generating long term earnings, providing resilience and financial strength across market cycles, while the group insurance segment has been weaker and more volatile. Wawanesa Life receives rating enhancement given its strategic role in providing life, annuity, accident and sickness and disability insurance products, which complement Wawanesa Mutual’s property/casualty product offerings.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
The longtime industry leader is launching two new FIAs that include signature features like Index Lock.
MINNEAPOLIS–(BUSINESS WIRE)–
Allianz Life Insurance Company of North America (Allianz Life) announced today that it is expanding its offering of accumulation-focused fixed index annuities (FIAs) to help Americans reach their retirement goals.
Allianz Life, a longtime industry leader in the marketplace, is launching two new FIAs that include signature features like Index Lock1.
Allianz Accumulation Advantage 5TM strengthens the accumulation-focused FIA suite of offerings with a 5-year withdrawal charge period. This FIA is designed for those seeking protected accumulation to limit risk from volatile markets, and does not have a product fee. It offers 100% protection for principal and credited interest from market loss while creating strong growth potential for accumulating retirement assets2.
“Our new accumulation FIA can help Americans who are working to increase their retirement assets but are worried about market volatility by balancing strong growth potential with a level of protection,” says Corey Walther, president of Allianz Life Financial Services, LLC. “This product could be especially useful for financial professionals who work through banks and financial institutions whose clients may be attracted to a shorter-term 5-year withdrawal charge period with a hedge against downside risk.”
The vast majority of Gen Xers (72%) who are in a critical time for retirement savings said they need to accumulate more money to retire but are too nervous to invest more money in the market in the Q1 2026 Quarterly Market Perceptions Study from the Allianz Center for the Future of Retirement. Three in four Gen Xers (75%) also said they want to add a financial product to their portfolio that offers protection from market downturns.*
Allianz Accumulation Advantage ClassicTM Annuity is also launching. Accumulation Advantage ClassicTM Annuity has a variety of index options, including the non-volatility-controlled S&P 500 Futures Index ER3. It also features the new 1-year Performance Trigger and 1-year Highest Daily Value with participation rate crediting methods on certain index allocations.
* Allianz Center for the Future of Retirement conducted an online survey, the Q1 2026 Quarterly Market Perceptions Study in February 2026 with a nationally representative sample of 1,005 respondents age 18+ in the contiguous U.S.
The Allianz Center for the Future of Retirement produces insights and research as a part of Allianz Life Insurance Company of North America.
1 Exercising an Index Lock may result in a credit higher or lower than if the Index Lock had not been exercised.
2 While principal and credited interest are protected from market downturns, and there is no product fee, fees or other charges may reduce the contract value.
3 The S&P 500® Futures Index ER is constructed from the front-quarter E-mini futures contract on the S&P 500. It is part of the S&P Factor Series, which measures the inherent risk premium between asset classes and financial markets.
The “S&P 500® Futures Index ER” is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”), and has been licensed for use by Allianz Life Insurance Company of North America (“Allianz”). S&P®, S&P 500®, SPX®, SPY®, US 500, The 500®, iBoxx®, iTraxx® and CDX® are trademarks of S&P Global, Inc. or its affiliates (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Allianz. Allianz products are not sponsored or sold by SPDJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500® Futures Index ER.
Distributions may be subject to a withdrawal charge. Distributions are subject to ordinary income tax and, if taken prior to age 59 1/2, an additional 10% federal tax.
Guarantees are backed solely by the financial strength and claims-paying ability of the issuing insurance company.
About Allianz Life Insurance Company of North America
Allianz Life Insurance Company of North America (Allianz Life), one of the Ethisphere World’s Most Ethical Companies®, has been trusted since 1896 to help millions of Americans prepare for financial uncertainties and retirement with a variety of innovative risk management solutions. In 2025, Allianz Life provided additional value to its policyholders via distributions of more than $18.7 billion. Allianz Life is a leading provider of fixed index annuities, registered index-linked annuities, and indexed universal life insurance. Additionally, Allianz Investment Management LLC (AllianzIM), a registered investment adviser and wholly owned subsidiary of Allianz Life, manages the suite of AllianzIM exchange-traded funds (ETFs). Allianz Life and AllianzIM are part of Allianz SE, a global leader in the financial services industry with more than 156,000 employees in nearly 70 countries. Allianz Life is a proud sponsor of Allianz Field® in St. Paul, Minnesota, home of Major League Soccer’s Minnesota United. C64997-MVA, ICC23C64997-MVA C64997-MVA
The U.S. gig economy is made up of roughly 57 million workers, according to the latest data from Deloitte. By 2027, the global accounting firm predicts freelancers and gig workers will become most of the workforce.
Insurance advisors would do well to recognize the growing presence of this demographic and meet the unique needs and goals of clients who are currently involved in the gig economy or plan to join it in the near future.
“Well-designed life insurance policies and properly guided strategies can become very desirable to those with high incomes, income fluctuations, and workers who want more tax-free growth and more tax-efficient planning for capital needs earlier in life,” explained Josh Anderson, president and CEO of Eagle Legacy & Financial.
Why life insurance is crucial for gig clients
Just as anyone else, gig economy power earners need life insurance to replace income that would stop the moment they quit working.
“High-income freelancers do not typically receive a benefits package including life insurance, making a standalone life insurance policy a critical purchase,” said Jake Tamarkin, co-founder and president of Everyday Life Insurance.
Even a basic term life insurance policy is worthwhile, especially for gig workers with loved ones who rely on their income. A policy wouldn’t cost much, but it can do wonders for their peace of mind and their family’s financial security.
Additionally, many gig workers are simply unaware that there are permanent policies that can provide living benefits and tax-free cash liquidity at times they might want or need it most.
“These policies are very appealing because of their flexible premiums, and potential tax strategy, cash liquidity and cash flow leverage opportunities for entrepreneurs and individual investors,” Anderson explained.
Life insurance solutions for those with unpredictable incomes
Term laddering can meet the immediate high coverage life insurance needs of high-income freelancers, while offering lower premiums.
“Instead of purchasing one large policy with a long-term high premium, these clients can stack smaller policies or policy riders with different durations to reduce their overall premium cost,” Tamarkin said.
Permanent policies, such as universal life, are another smart option for gig economy power earners.
“These products let policyholders adjust their premiums to align with ups and downs in their income, plus build cash value they can contribute to long-term financial goals,” Tamarkin explained.
Paying premiums in advance might also make sense for some clients with unpredictable income streams.
“Many life insurance carriers offer options to pay premiums upfront, so when earnings are high, gig workers can pre-pay their life insurance policy in a lump sum,” Tamarkin said.
Additionally, riders, like cash value riders, may be worthwhile.
“These may be appropriate in some cases when gig workers or freelancers need short-term access to cash to pay off debt or meet cash reserve and liquidity needs,” Anderson said.
Ultimately, the right mix of flexibility and protection can help gig workers safeguard their families while adapting to income variability.
Healthcare Inflation ETFs to help Americans, businesses, and government entities guard against financial risk, economic cost, and consumer affordability risks
Built by Milliman’s premier health actuaries and Milliman Financial Risk Management, a leader in managed risk investing with approximately $242B AUM as of December 31, 2025.
Data-driven: Active, multi-asset ETFs use Milliman’s Health Trend Guidelines—health industry’s trusted source for cost increase and claims data—to inform portfolio allocations
Retirement Healthcare Cost Calculator: Milliman hosts a free calculator for Americans to help estimate their healthcare costs in retirement
The Milliman Healthcare Inflation Guard ETF (MHIG) seeks to generate returns that are generally equivalent to the U.S. healthcare cost inflation rate over time, as measured by Milliman Health Trend Guidelines (HTGs).
The Milliman Healthcare Inflation Plus ETF (MHIP) seeks to generate returns that over time exceed the U.S. healthcare cost inflation rate.
“We all feel the impact of rising healthcare costs. The launch of MHIG and MHIP is a historic moment for Milliman, our clients, and anyone who is concerned about healthcare costs. Milliman is the only firm with the data, healthcare expertise, and investment capabilities to make these healthcare cost hedging solutions possible. We’ve provided the gold standard in health cost benchmarking since 1956, and our tools are still the premier source for insurers, providers, and company health plans. Now we’re combining that data and intelligence working across the healthcare ecosystem with our industry leading managed risk investment capabilities, trusted by life insurers and institutions since 1998. Today, we bring these combined abilities onto the New York Stock Exchange with the Milliman Healthcare Inflation ETFs,” said Bret Linton, Chair of Milliman.
Cost of U.S. healthcare continues to rise
Milliman’s 2025 Retiree Health Cost Indexestimates that the average 65-year-old couple retiring in 2025 will spend approximately $588,000 for medical costs in their retirement2. At the same time, the median 65 to 74 year old American has only $200,000 saved for retirement for all costs, not just healthcare.3
According to the 2025 Milliman Medical Index (MMI), the cost of healthcare for a hypothetical family of four in a typical employer-sponsored health plan is now $35,119, up from $12,214 in 2005 at the launch of the MMI4. This near tripling in cost represents a 6.1% average annual increase from 2005-2025. Total healthcare related spending constitutes 17.6% of U.S. GDP, according to the Centers for Medicare and Medicaid Services5 and healthcare is the third largest lifetime expenditure6.
“With MHIG and MHIP, there are now ETFs that seek to meet the rising cost of U.S. healthcare, a key financial risk that impacts all Americans. We’ve been carefully working on these solutions for over three years, and we are honored to share what we’ve built with all Americans. The amount that the average American will spend on healthcare is staggering. It’s behind only housing and food as a lifetime cost. While financial planning accounts for healthcare costs, an investment approach dedicated to and modeled on this massive financial risk hasn’t been available, until today,” said Adam Schenck, CFA, Principal & Managing Director, Fund Services, Milliman FRM.
Measuring the pulse of healthcare cost changes with unparalleled data and indices
Founded in 1947, Milliman is the preeminent US healthcare consultancy, with 600+ credentialed health actuaries and hundreds of multidisciplinary experts. Milliman works with 24 of 25 largest commercial insurers, serves as actuary for 22 of 51 state Medicaid plans, and counts the majority of Medicare Advantage plans as clients.
The firm publishes the most precise and up-to-date measure for healthcare costs and inflation forecasting to accurately reflect the cost increases people, employers, payers and providers actually experience, the HTGs. The HTGs are a series of indices providing data on the cost, utilization, and unit costs of healthcare goods and services. The information used to calculate the indices is provided by leading health insurance plans and data firms, covering approximately 35 million insured covered individuals in the U.S., representing about 20% of the total commercially enrolled private market. Many of the largest insurers, healthcare providers, and employer health plans in America rely on the HTGs, which this year show healthcare costs rising more than 7% nationally.
The HTGs inform Milliman’s Healthcare Inflation ETFs, providing a targeted growth rate and informing strategic allocation decisions across asset classes, as well as stock and industry selection within the equity portfolio based on changes in healthcare costs, utilization and makeup of the sector.
“The rising cost of care, known as trend, and affordability concerns have anchored so much of our work helping clients manage and anticipate industry trends. But great data and strategic vision can only get organizations so far when Milliman’s HTGs show costs are rising over double the rate of inflation in the broader economy and medical CPI. Investing in cash when healthcare costs are rising over 7% just won’t cut it. This is a bold new way to invest healthcare-dedicated capital that aims to overcome legacy financial challenges by investing in the organizations that benefit when healthcare spending goes up–but in a risk-managed way. This strategy has the potential to realign incentives and empower investors to keep up with trends without taking on more risk than necessary. We’re excited to share MHIG and MHIP with health insurers, care providers, employer health plans and governments—as well as wealth managers and their clients, the American people,” said Hans Leida, PhD, FSA, MAAA, Principal & Consulting Actuary.
What are Milliman Healthcare Inflation ETFs, and how do they work?
Milliman Healthcare Inflation ETFs will use an actively managed mix of Health sector and related equities, bonds (U.S. Treasuries, TIPS, and corporate bonds) and alternatives, including commodities and liquid alts strategies, in seeking to generate returns that are generally equivalent to or exceed U.S. healthcare cost inflation.
The multi-asset portfolios will use a quantitative model based on Milliman FRM’s extensive research and analysis on the assets’ interrelationships and interactions with the path of healthcare inflation. The model aims to dynamically manage volatility to minimize portfolio losses during drawdowns in the underlying assets, which could prevent the ETFs from corresponding with inflation over time.
Over time, increased costs for healthcare can filter through to increased earnings for companies operating in and related to the healthcare sector. This is not always the case, but Milliman has identified a relationship over time between certain healthcare and related equities and healthcare costs. By investing in a multi-asset portfolio, the Milliman Healthcare Inflation ETFs seek to decrease risk at the portfolio level, as well as utilize assets that have counterbalanced each other over market and/or economic cycles throughout periods of increasing healthcare costs.
MHIG and MHIP are actively rebalanced on a monthly basis as the HTGs are updated. MHIP will generally maintain a higher exposure than MHIG to risk assets to help it attain its goal of over time exceeding the HTGs.
Both ETFs charge a net expense ratio of 0.55%, which includes a fee waiver for acquired fund fees and expenses until at least April 30, 2027 (MHIG Gross Expense Ratio of 0.58% and MHIP Gross Expense ratio of 0.56% includes AFFE).
351 Conversion ports existing Healthcare Investment Solutions strategy into MHIG
Using the 351 Exchange mechanism, the Milliman Healthcare Inflation Guard ETF (MHIG) will assume the assets and track record of a separately managed account (the Predecessor Account) Milliman FRM utilized in the incubation of its investment strategy. The strategy was incepted April 22nd, 2024 with capital belonging to Milliman’s partners.
Past performance is not a reliable indicator of future results. The Predecessor Account, which had investment policies, objectives, guidelines and restrictions that were in all material respects equivalent to those of the Fund was not registered under the 1940 Act and therefore was not subject to certain investment restrictions that are imposed by the 1940 Act on registered investment companies. If the Predecessor Account had been registered under the 1940 Act, the Predecessor Account’s performance may have been adversely affected.
How investors can implement Milliman ETFs MHIG & MHIP
The ETFs are intended to be invested in by companies (providers and payers), health insurers, governments and individuals to help grow capital that is targeted to be used for healthcare costs. Currently, it is common to use cash or bonds to save for healthcare expenses, but for decades healthcare costs have risen at rates well higher than yields on cash and Treasury bills.
“We feel the Healthcare Inflation ETFs can be a long-term, buy-and-hold core portfolio fixture for certain individuals within their tax-advantaged accounts, like their Health Savings Accounts (HSAs) and in their IRAs or 401(k)s on the retirement side of things, as well as their taxable accounts to budget for health costs that may arise over time. For health insurers, providers and company health plans, as well as governments, MHIG and MHIP can be a foundational holding in their capital base to meet their liabilities tied to the rising cost of healthcare,” added Schenck.
Individuals or their financial advisors could allocate to Milliman Healthcare Inflation ETFs in their tax-advantaged HSAs, 401(k) and/or individual retirement accounts (IRAs). Currently, there is an estimated $150 billion in HSAs7, yet only 10% of HSA account holders invest their savings8. There is $13 trillion in defined contribution plans, and $18 trillion in IRAs9.
“We are dedicated to helping Americans understand the rising cost of healthcare, how it can impact their financial plan and—now with the Milliman Healthcare Inflation ETFs—how they can plan for it in their portfolios,” added Leida.
Healthcare Cost Calculator helps Americans understand their financial risk in retirement
In conjunction with HealthView Services, Milliman has built a free Retirement Healthcare Cost Calculator. With just a few inputs, this free tool allows Americans to understand the potential amount of healthcare costs they may face in retirement.
Milliman leverages deep expertise, actuarial rigor, and advanced technology to develop solutions for a world at risk. We help clients in the public and private sectors navigate urgent, complex challenges—from extreme weather and market volatility to financial insecurity and rising health costs—so they can meet their business, financial, and social objectives. Our solutions encompass insurance, financial services, healthcare, life sciences, and employee benefits. Founded in 1947, Milliman is an independent firm with offices in major cities around the globe. Visit us at milliman.com.
ABOUT MILLIMAN FINANCIAL RISK MANAGEMENT LLC
Milliman Financial Risk Management LLC FRM is a global leader in financial risk management to the retirement industry, providing investment advisory, hedging, and consulting services on approximately $242 billion in global assets as of December 31, 2025. With a specialty in options-based defined outcome funds, including buffer strategies, Milliman FRM is one of the largest and fastest-growing subadvisors of ETFs. For more information about Milliman FRM, visit https://frm.milliman.com/en/.
Distributed by Foreside Fund Services, LLC, unaffiliated with Milliman.
ETF investing involves risk and principal loss is possible. Shares of any ETF are bought and sold at Market Price (not NAV) and not individually redeemed from the fund. Brokerage commissions will reduce returns. The fund is a new fund with limited operating history for potential investors to evaluate.
Factors such as extensive government regulation, rising costs, product liability and other claims, changes in technologies and other market developments can adversely affect companies in the healthcare sector and, therefore, the Fund’s returns.
The Quantitative Model seeks to produce returns, before Fund fees and expenses, that are correlated to the U.S. healthcare cost inflation rate as measured by the MI Actuarial Analysis. The MI Actuarial Analysis is proprietary, and its measure of the U.S. healthcare cost inflation rate may differ materially from other U.S. healthcare cost inflation measures. The Fund may be adversely affected by imperfections, errors or limitations in the construction or implementation of the Quantitative Model and/or Milliman’s ability to monitor and timely adjust the metrics or update the data or features underlying the Quantitative Model. The Quantitative Model relies on various sources of information to assess the criteria of the selected components, including information that may be based on assumptions and estimates, and there can be no guarantee that the Quantitative Model will produce the intended results.
A number of factors may affect the Fund’s ability to achieve a high degree of correlation with the U.S. healthcare cost inflation rate, as measured by the MI Actuarial Analysis, and there is no guarantee that the Fund will achieve a high degree of correlation.
1 As of December 31, 2025.
2 Assuming enrollment in Medicare; however, this excludes costs for long-term care, dental or over-the-counter medications. For more information, see the 2025 Milliman Retiree Health Cost Index. 3 According to Federal Reserve Survey of Consumer Finances, 2022.
6 Based on the 2025 Milliman Retiree Health Cost Index, a healthy 65-year-old couple is projected to spend a combined $588,000 (base) to $628,000 (with 15% trend variance) on healthcare. When these retirement-specific costs are aggregated with lifetime working-age expenditures, healthcare emerges as the third largest lifetime expenditure, following housing and taxes, and often surpassing transportation, per the Bureau of Labor Statistics (BLS) Consumer Expenditure Survey data for a full lifetime (approx. 60 years of adult life).
MONTPELIER, Vt.–(BUSINESS WIRE)– National Life Group released its 2025 Annual Report, which highlights the company’s bigger, better, bolder approach to solid, steady and sustainable growth. It also released its popular Business Highlights which is a snapshot of the good the company did in 2025.
“These results reflect the hard work and innovation of our people and position National Life Group among the top ten life insurance companies as ranked by LIMRA,” Chair, CEO and President Mehran Assadi said. “Even more important are the deep and lasting relationships we build with our agents and associates, which remain central to who we are.”
Among the accomplishments noted in the 2025 Annual Report:
$65.7 billion in assets under management1
$634 million in life insurance sales2
$229 million in flexible annuity sales2
$3 billion in Single Premium Deferred Annuities2
$703 million in core earnings1
6,179,790 meals donated to those in need through the National Life Group Do Good Fest concert series as well as through the National Life Group Foundation
National Life Group has been keeping promises since 1848, providing access to flexible, secure life insurance and annuities for families, businesses, educators, and first responders nationwide. With an independent, entrepreneurial spirit, our values are to “Do good, Be good, Make good” for our customers, agents, employees, and the communities we serve. Learn more at NationalLife.com.
National Life Group® is a trade name of National Life Insurance Company (NLIC), Montpelier, VT founded in 1848, Life Insurance Company of the Southwest (LSW), Addison, TX chartered in 1955, and its affiliates. Each company is solely responsible for its own financial condition and contractual obligations. LSW is not an authorized insurer in New York and does not conduct insurance business in New York. NLIC, the flagship of National Life Group was founded in 1848, and all references to 1848 are attributable to NLIC.
Products are issued by National Life Insurance Company and Life Insurance Company of the Southwest.
1 Based on the consolidated results as of and for the year ended December 31, 2025, stated on the basis of U.S. Generally Accepting Accounting Principles (GAAP) of NLV Financial Corporation (NLVF) and its subsidiaries and affiliates, including National Life Insurance Company (NLIC) and Life Insurance Company of the Southwest (LSW). NLVF and its subsidiaries and affiliates operate as a unified organization under the trade name of National Life Group (NLG). Total assets exclude unrealized gains (losses) and associated balances. The measurement of core earnings only exists on a consolidated GAAP basis. Statutory basis financial figures as of December 31, 2025: NLG consolidated admitted assets were $55.7B and liabilities were $52.4B. NLIC admitted assets were $13.1B and liabilities were $9.8B.
2 Life sales include total weighted new annualized premium for NLIC and LSW. Flow annuity (new anticipated annual premium contributions) and single premium deferred annuity sales include total deposits for NLIC and LSW. For the year ended December 31, 2025 NLIC life insurance WNAP were $61M, flow annuity total deposits were $7M, and SPDA total deposits were $125M.
3 Wall Street Journal, “Best Whole Life Insurance Companies of 2025,” Amy Danise, Kimberly Lankford, October 28, 2025
For millions of American families, the workplace has become the primary gateway to life insurance coverage. In fact, more than half of working adults access life insurance exclusively through their employer, treating annual open enrollment as a checkbox that provides a sense of security.
Trevor Gartner
But that sense of security can be misleading.
Although 57% of workers with employer coverage believe it’s sufficient, most policies provide only $20,000 or one year’s salary—far short of the 10x to 12x salary multiple that most financial professionals recommend. According to 2025 LIMRA research, 49% of households that rely solely on employer coverage would struggle financially within six months of losing a primary earner.
Understanding workplace life insurance options
Most employees encounter three distinct forms of life insurance at work during their careers. Each serves a purpose, but none alone provides complete protection.
1. Employer-paid group term life: This foundation of workplace benefits typically provides coverage equal to the beneficiary’s annual salary or a flat amount ($20,000–$50,000). Although this coverage is valuable, it is designed for immediate final expenses — funeral costs and short-term obligations — not long-term financial security. It doesn’t sustain households with mortgages, tuition needs or young children. This can leave families vulnerable during job transitions, health crises or sudden loss.
2. Employee-paid voluntary group term life: Many employers offer “buy-up” options through payroll deductions at competitive rates with guaranteed issue underwriting during initial eligibility. However, critical limitations remain, including coverage tied to employment, limited or expensive portability, and coverage caps below actual need. This creates what I call the “coverage illusion”— more protection than the base plan, but still insufficient for full financial security.
3. Individual life insurance: Individual policies, whether term or permanent, are owned by the policyholder, not the employer. Permanent life insurance offers lifetime coverage, stability, portability regardless of employment and, often, cash value accumulation. This is the only option providing true control and permanence, making it essential for complete protection.
The hidden risks: When coverage is tied to employment
The most overlooked risk in financial planning is reliance on employer-based coverage alone. When employment changes, coverage often changes or disappears entirely.
I call this the “coverage cliff.” When someone leaves a job, their group-based life insurance typically doesn’t follow them. Although some plans offer conversion options, those policies come with significantly higher premiums and limited enrollment windows.
Meanwhile, life doesn’t pause during career transitions. Health can change, financial responsibilities continue, and securing new coverage may become more difficult or expensive. I often ask clients: “If your paycheck stopped today, how long could your family stay in this house?” For 37% of workers, the answer is less than six months.
The knowledge gap driving underinsurance
Education is the primary barrier to proper protection. Many employees don’t know how much coverage they have, what happens if they leave their job or whether it aligns with their family’s needs. Only 29% of adults with workplace-only insurance say they are “very or extremely knowledgeable” about their actual coverage.
Cost perception creates another barrier. While 52% of people think life insurance is too expensive, 78% overestimate the actual cost. Showing a healthy 35-year-old that $500,000 in coverage costs less than a monthly streaming subscription often creates a breakthrough moment.
Timing is another critical mistake. Life insurance is uniquely tied to health. Waiting until leaving an employer or until a health event occurs can significantly limit options or increase costs. The best time to act is before you think you need to.
Building a layered protection strategy
The most effective strategy isn’t choosing between workplace and individual life insurance; it’s integrating both.
● Workplace coverage (employer-paid + voluntary): Acts as a foundation and provides immediate, cost-effective protection
● Individual coverage (term and/or permanent): Fills the gap, ensuring long-term income replacement, debt coverage and family stability
This approach creates flexibility, continuity and true financial protection regardless of employment status.
Help clients build comprehensive protection:
Laddering strategy. Use the employer-provided coverage (typically 1x salary) as the “liquidity fund” for immediate needs. Then build an individual term or permanent policy to cover the remaining 9x–10x salary needed for debt and income replacement.
Targeting high-risk segments. Parents represent a critical opportunity, as 59% of workers with children under 18 rely solely on workplace coverage. Yet a $20,000 payout won’t cover even two years of child care, let alone a decade of support.
Lack of protection early. Waiting to buy individual coverage until leaving a job can be costly. A health change while employed could make a private policy unaffordable or unattainable later. Buying now guarantees the rate and the right to remain covered regardless of employment status.
Complete the coverage strategy
When someone says, “I have life insurance through work,” that should signal the start of a conversation, not the end of one. As industry professionals, our responsibility is to move individuals from passive enrollment to informed decision-making, helping them build protection that lasts beyond any single job.
Conduct benefits audits with clients by reviewing their employer’s summary plan description together. Point out limitations and show how “buy-up” options often require medical underwriting but offer none of the portability of an individual policy.
The truth is, everyone wants security, but many lack execution. Employers play a critical role in providing benefits, but workplace coverage is rarely enough on its own. Real security comes from combining employer-provided coverage, voluntary workplace options, and individually owned policies.
When these elements work together, families are no longer dependent on an employer for protection. Instead, they have a strategy built to endure career changes, life events and the uncertainties ahead.
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