Is Penn Mutual a good annuity company?
Yes, especially if financial strength is your top filter. Penn Mutual holds A+ (Superior) from AM Best, backed by an Aa3 from Moody's, an A+ from S&P and an AA- from Fitch, and it has kept an A or better AM Best rating for more than 75 consecutive years. As a mutual company with no outside shareholders, it answers to policyholders rather than Wall Street. Its annuity shelf is smaller than some national carriers, but the Premier Foundation index annuity and the single premium immediate annuity with an inflation rider stand out. The catch is access: most buyers reach Penn Mutual through its affiliated advisor network rather than a broad independent channel.
Penn Mutual at a glance
| Legal name | The Penn Mutual Life Insurance Company |
|---|---|
| Founded | 1847 (selling annuities since 1888) |
| Headquarters | Horsham, Pennsylvania |
| Ownership | Mutual life insurance company, policyholder owned |
| AM Best rating | A+ (Superior), A or better for 75+ consecutive years |
| Other ratings | Moody's Aa3, S&P A+, Fitch AA- |
| What it sells | Fixed index annuity, variable annuity, fixed (MYGA-style) annuity, SPIA |
| State availability | 49 states plus D.C.; New York served through a separate entity |
Where Penn Mutual 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+Penn Mutual
- A
- A-
- B++
- B+
- B
- B-
- C++
- C+
- C
- C-
- D
Today's rates for Penn Mutual
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.
Penn Mutual's financial strength and background
Penn Mutual has been around since 1847, making it one of the older continuously operating life insurers in the country, and it added annuities to its shelf in 1888. As a mutual company, it has no outside shareholders and no quarterly earnings call to satisfy, which the company points to as the reason it can return value directly to policyholders. For 2026, Penn Mutual set its policyholder dividend payout at roughly $300 million, the largest in its 179-year history.
Its ratings span four agencies at once: A+ from AM Best, Aa3 from Moody's, A+ from S&P and AA- from Fitch. AM Best in particular has rated Penn Mutual A or better for more than 75 consecutive years, a streak that very few carriers can match. The company also reports a complaint ratio with state regulators that runs well under what its size would predict, roughly 6% of the expected volume.
Penn Mutual financial strength ratings
| Rating agency | Rating | What it means | Outlook |
|---|---|---|---|
| AM Best | A+ | Superior | |
| S&P Global | A+ | Strong | |
| Moody's | Aa3 | Excellent | |
| Fitch | AA- | Very strong |
Four top-tier marks at once puts Penn Mutual in rare company among annuity issuers, on par with carriers like Pacific Life. Always confirm the current numbers directly with each agency before funding a contract.
A rating measures the company, not the product. It tells you how likely the insurer is to keep its promises, not whether a specific annuity is the right fit for you.
Your state's guaranty association adds a further backstop up to a state-set dollar limit, on top of whatever the carrier's own rating tells you.
What annuity products does Penn Mutual offer?
- Premier Foundation Indexed Annuity. An FIA tracking the S&P 500 with a floor that keeps your contract value from falling due to index losses. Two optional riders are available: a Guaranteed Growth Withdrawal Benefit for lifetime income, and an Inflation Security Withdrawal Benefit that steps income up over time to help offset rising costs.
- Smart Foundation Variable Annuity. An investment-oriented VA offering equity funds across several sectors plus five Lifestyle Asset Allocation funds. It carries a $40 annual contract fee and a mortality and expense charge of 1.40% to 1.65%, depending on the option selected.
- Guaranteed fixed annuity. A MYGA-style contract with a locked-in rate for terms of 3 to 10 years, plus a 10% annual withdrawal allowance with no penalty starting after the first year.
- Single premium immediate annuity. Accepts premiums from $10,000 up to $3,000,000. Payout structures range from a single life to two lives jointly, a set period certain, or a blend of a lifetime payment with a guaranteed minimum stretch of years. An optional cost-of-living adjustment rider is available to help the payment keep pace with inflation.
Penn Mutual does not currently sell a registered index-linked annuity or other structured/buffered product, so buyers who want that defined-buffer middle ground between fixed and variable will need to look at another carrier.
Who is Penn Mutual best for?
- Conservative, long-term buyers who rank financial strength above nearly everything else in a carrier search.
- Retirees who want SPIA income that adjusts for inflation. The optional COLA rider is a meaningful feature few competitors offer.
- High-net-worth buyers, since the SPIA accepts premiums as large as $3 million and the multi-agency ratings support confidence in a large allocation.
- Buyers who prefer a mutual, policyholder-owned carrier over one that answers to public shareholders or a private equity owner.
- Clients already working with a 1847Financial or HTK-affiliated advisor, since that is Penn Mutual's primary distribution channel.
Penn Mutual is a weaker fit if your current agent has no relationship with the company, since it is not broadly available through independent marketing organizations or general independent agent networks.
Other annuity companies to consider
- MassMutual: another mutual carrier with a broad annuity shelf
- Northwestern Mutual: mutual structure with a strong long-term ratings history
- Pacific Life: comparable financial strength with a deeper FIA lineup
Pros and cons
Pros
- Elite marks across four agencies: A+, Aa3, A+ and AA-
- 179 years in business with a 75-plus year streak of A or better from AM Best
- Mutual ownership behind a 2026 policyholder dividend payout of roughly $300 million
- A notably low NAIC complaint ratio relative to the company's size
- One of the few SPIAs on the market with a built-in cost-of-living adjustment rider
- 10% annual penalty-free withdrawal on the fixed annuity product
Cons
- Sold mainly through the affiliated 1847Financial network and the HTK broker-dealer, not the broader independent channel
- No online quoting; every purchase runs through a financial professional
- No RILA or other structured/buffered annuity for buyers who want that middle ground
- Variable annuity fees sit at the higher end, 1.40% to 1.65% for the mortality and expense charge
- Lower brand recognition than the ratings would suggest
Frequently asked questions
How secure is Penn Mutual as an annuity carrier?
Very. Penn Mutual carries A+ from AM Best, Aa3 from Moody's, A+ from S&P and AA- from Fitch, and it has not dropped below an A from AM Best in more than 75 years. Check ambest.com and Penn Mutual's own investor materials for the current figures before you buy.
Can any insurance agent sell me a Penn Mutual annuity?
No. Distribution runs mainly through the company's affiliated network, 1847Financial, and through the HTK broker-dealer, not through most independent marketing organizations. You will need an advisor connected to one of those channels, and a licensed strategist can help you find that path based on where you live.
What makes Penn Mutual's SPIA stand out?
Two things: it accepts premiums up to $3 million, which covers even large rollovers, and it offers an optional cost-of-living adjustment rider that raises your monthly payment each year to help keep pace with inflation. Very few immediate annuity carriers build that adjustment in as an option.
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.
