Is American Fidelity a good annuity company?
For the buyers it serves, yes. American Fidelity Assurance Company has held an A+ (Superior) rating from AM Best continuously since 1982, one of the longer unbroken A+ streaks in the industry, and it is privately held by the Cameron family rather than answering to public shareholders. The catch is access: American Fidelity sells its annuities only inside employer-sponsored 403(b) and 457(b) retirement plans for public school staff, government employees and certain non-profit healthcare workers. If your employer offers it, that stability is real. If you are shopping as a retail buyer through an independent agent, American Fidelity is not on the menu.
American Fidelity at a glance
| Legal name | American Fidelity Assurance Company |
|---|---|
| Founded | 1960, Oklahoma City, Oklahoma |
| Headquarters | Oklahoma City, Oklahoma |
| Ownership | Privately held by the Cameron family; not mutual, not publicly traded |
| AM Best rating | A+ (Superior), held continuously since 1982 |
| What it sells | 403(b) and 457(b) fixed and variable annuities |
| Distribution | Employer-direct only, not through independent agents or IMOs |
| Primary market | Public school employees, government workers, eligible healthcare workers |
Where American Fidelity sits on the AM Best scale
A+ is grade 2 of 13. Most buyers look for A- or better for a long-term contract.
- A++
- A+American Fidelity
- A
- A-
- B++
- B+
- B
- B-
- C++
- C+
- C
- C-
- D
Today's rates for American Fidelity
Rates change often and vary by state, term and deposit size. Get today's numbers for your state, side by side with other top-rated carriers. Free, with no obligation.
American Fidelity Assurance Company is a private, family-owned insurer with an unusual claim: it has kept an A+ rating from AM Best for more than 40 years running. The trade-off is that its annuities are built almost entirely for one audience, public school staff, government workers and eligible healthcare employees, sold only through the employer's own 403(b) or 457(b) plan. If your job gives you access to American Fidelity, you are working with one of the more financially stable names in the business. If you are shopping on your own through an independent agent, this carrier simply is not an option.
American Fidelity's financial strength and background
The Cameron family founded American Fidelity in 1960 in Oklahoma City, and they still own the company today. That structure, private ownership with no public shareholders demanding quarterly results, has been a big part of the company's financial consistency. Its A+ rating from AM Best has held continuously since 1982, which puts American Fidelity in a small group of U.S. insurers with a four-decade-plus unbroken run at that tier.
| Rating agency | Rating | What it means | Outlook |
|---|---|---|---|
| AM Best | A+ | Superior | |
| S&P Global | Not rated | ||
| Moody's | Not rated | ||
| Fitch | Not rated |
The company's focus is deliberately narrow. American Fidelity built its entire business around the specific plan types teachers and public employees have access to through work, and it designs its products, sales process and service model around that one audience. Because it only sells through employer channels, it also never shows up on an open-market rate comparison the way Athene or MassMutual Ascend does. Access starts and ends with your employer offering a plan. Always confirm the current rating directly with AM Best before relying on it.
What annuity products does American Fidelity offer?
- AFchoice 403(b) deferred annuity. Lets eligible school district and non-profit staff build savings through payroll deductions, with tax-deferred growth and a choice of guaranteed interest crediting. Only available where your employer already has a plan set up.
- 457(b) deferred compensation annuity. Built for government workers at the state and local level, with its own set of contribution limits and payout rules that do not match a 403(b) one for one.
- AF Advantage variable annuity. Variable subaccount options offered within the 403(b) or 457(b) structure. This is a securities product and requires a licensed financial professional.
- Guaranteed interest accounts. Fixed-rate crediting options inside the annuity contract for participants who want principal protection rather than market exposure.
None of these products are available to retail buyers through an independent agent or an IMO. Access is limited entirely to an eligible employer-sponsored plan.
Who is American Fidelity best for?
- K-12 public school teachers and staff, if their district already has American Fidelity's 403(b) plan set up.
- Government workers at the state or local level, once their agency has put an American Fidelity 457(b) plan in place.
- Staff at eligible non-profit hospitals or health systems that already contract with American Fidelity.
- Anyone in the public sector who specifically wants an A+ rated carrier behind their supplemental savings.
Outside a qualifying employer plan, this carrier simply is not something you can buy. If you are an educator and American Fidelity is not on your district's approved vendor list, carriers like TIAA or plans through Nationwide may be the alternative your employer offers instead.
Other annuity companies to consider
If American Fidelity is not available through your employer, or you are shopping outside the 403(b)/457(b) space entirely, these carriers are worth a look:
- TIAA: another carrier common in education and non-profit retirement plans
- Nationwide: broad retail and employer-plan annuity lineup
- MassMutual Ascend: a strong retail alternative if you are shopping through an independent agent
Pros and cons
Pros
- A+ (Superior) from AM Best, held without interruption since 1982
- Privately owned, so no quarterly earnings pressure or shareholder demands
- Deep specialization in the 403(b) and 457(b) space for educators and public employees
- Clean customer service reputation with the public sector audience it serves
- Payroll-deduction contributions match how teachers and public employees actually get paid
Cons
- Not available through independent agents or brokers at all
- You can only buy in if your employer already offers a plan
- Crediting rates are not published; you have to ask a representative through your employer
- Narrower product range than full-service retail annuity carriers
- Even within eligible sectors, availability depends on your specific employer or district
Frequently asked questions
If I am not a teacher, can I still get an American Fidelity annuity?
Only through a qualifying employer. You need to work for a public school district, government agency or eligible non-profit healthcare system that has already set up an American Fidelity plan. There is no way to enroll as an individual retail client on your own. Without that employer relationship, look instead at MYGA or fixed annuity options sold through an independent agent, where you can shop rates across many carriers at once.
What makes a 403(b) annuity different from an ordinary fixed annuity?
A 403(b) is a tax-qualified retirement account reserved for public school staff and workers at certain non-profits, and contributions go in pre-tax through payroll, the same idea as a 401(k), which lowers your taxable income right away. A plain fixed annuity or MYGA, by contrast, is typically funded with money you have already paid tax on and simply grows tax-deferred from there. The two are taxed differently when you eventually withdraw, so check our guide on how annuities are taxed for the details.
If I change jobs, what happens to my American Fidelity annuity?
Whatever value has built up belongs to you, not your former employer. Once you separate from the job, you can usually roll the balance into an IRA, roll it into a new employer's plan if that plan will accept it, or simply leave it where it is to keep growing tax-deferred. Reach out to American Fidelity directly to confirm which options your specific contract allows.
Written and reviewed by
James Forren Warren
Licensed Retirement Income Strategist · License #20551202
James Forren Warren is a licensed Retirement Income Strategist with Tax Free Wealth Plan. For the past five years he has helped individuals and families turn their savings into retirement income they can count on. He writes and reviews the annuity research on this site and keeps it plain: what a product does, what it costs you, and who it actually fits.
Sources
Educational only, not investment, tax or legal advice. Tax Free Wealth Plan LLC is a licensed insurance agency, not a registered investment adviser or broker-dealer. Annuities are not bank deposits, are not FDIC insured and are not guaranteed by any government agency. Guarantees are backed solely by the claims-paying ability of the issuing insurance company. Features, rates and availability vary by state and change over time; the contract and disclosure documents govern.
