Indexed Annuity Sales Up More Than 10% In 1Q

Des Moines, Iowa. May 24, 2018- Wink’s Sales & Market Report, the insurance industry’s #1 resource for indexed annuity sales data since 1997, is in its third year of reporting on all deferred non-variable annuities which include indexed annuity, traditional fixed annuity, and multi-year guaranteed annuity (MYGA) product lines. This is the first quarter for Wink to report on structured annuities, (a.k.a. indexed-variable annuities, collared annuities, or buffered annuities).

Sixty indexed annuity providers, 64 fixed annuity providers, 74 MYGA providers, and six structured annuity companies participated in the 83^rd edition of Wink’s Sales & Market Report for 1^st Quarter, 2018. Total first quarter non-variable deferred annuity sales were over $23.1 billion; up 9.4% when compared to the previous quarter and up 0.2% when compared to the same period last year.  Non-variable deferred annuities include the indexed annuity, traditional fixed annuity, and MYGA product lines

Noteworthy highlights for all non-variable deferred annuities in the first quarter included New York Life ranking as the #1 carrier overall for non-variable deferred annuity sales, with a market share of 9.6%. Allianz Life held the second position and AIG, Global Atlantic Financial Group, and Athene USA rounded-out the top five carriers in the market, respectively. Allianz Life’s Allianz 222 Annuity, an indexed annuity, was the #1 selling non-variable deferred annuity, for all channels combined, in overall sales.

Indexed annuity sales for the first quarter were $14.2 billion; up 4.4% when compared to the previous quarter, and up 10.0% when compared with the same period last year. Indexed annuities have a floor of no less than zero percent and limited excess interest that is determined by the performance of an external index, such as Standard and Poor’s 500^®.

“We haven’t had an increase in indexed annuity sales this big in nearly two years,” proclaimed Sheryl J. Moore, president and CEO of both Moore Market Intelligence and Wink, Inc. She continued, “I look forward to seeing how improvements in interest rates will affect sales throughout the remainder of 2018.”

Noteworthy highlights for indexed annuities in the first quarter included Allianz Life retaining their #1 ranking in indexed annuities, with a market share of 11.7%. Athene USA held the second-ranked position, and Nationwide, American Equity Companies, and Great American Insurance Group rounded-out the top five carriers in the market, respectively. Allianz Life’s Allianz 222 Annuity was the #1 selling indexed annuity, for all channels combined, for the fifteenth consecutive quarter.

Traditional fixed annuity sales in the first quarter were $729.7 million; down 3.3% when compared to the previous quarter, and down 32.1% when compared with the same period last year. Traditional fixed annuities have a fixed rate that is guaranteed for one year only.

Noteworthy highlights for traditional fixed annuities in the first quarter include Jackson National Life ranking as the #1 carrier in fixed annuities, with a market share of 15.1%. Modern Woodmen of America continued in the second-ranked position and Global Atlantic Financial Group, Great American Insurance Group, and American National rounded-out the top five carriers in the market, respectively. Forethought Life’s ForeCare Fixed Annuity was the #1 selling fixed annuity for the quarter, for all channels combined.

Multi-year guaranteed annuity (MYGA) sales in the first quarter were $8.1 billion; up 20.9% when compared to the previous quarter, and down 9.8% when compared to the same period last year. MYGAs have a fixed rate that is guaranteed for more than one year.

Noteworthy highlights for MYGAs in the first quarter include New York Life ranking as the #1 carrier, with a market share of 27.2%.  Global Atlantic Financial Group moved-into the second-ranked position, while AIG, Symetra Financial and Pacific Life Companies rounded-out the top five carriers in the market, respectively. Forethought’s SecureFore 3 Fixed Annuity was the #1 selling multi-year guaranteed annuity for the quarter, for all channels combined.

Structured annuity sales in the first quarter were $2.9 billion. Structured annuities have a limited negative floor and limited excess interest that is determined by the performance of an external index or subaccounts.

Noteworthy highlights for structured annuities in the first quarter include AXA US ranking as the #1, with a market share of 51.5%.  Brighthouse Life Shield Level Select 6-Year was the #1 selling structured annuity for the quarter, for all channels combined.

“The rollout of our structured annuity sales is Wink’s first foray into variable annuity research. Our annuity product intelligence tool will hit AnnuitySpecs in less than a month,” declared Wink’s CEO, Sheryl J. Moore. “Our conversations with insurance companies about these new products’ classification were very interesting! Some call them ‘buffered annuities,’ others refer to them as ‘indexed VAs,’ and still, others refer to them as ‘collared annuities.’ The important thing to remember is that these aren’t indexed annuities, although some companies are marketing them in that manner,” she opined.

While Wink currently reports on indexed annuity, fixed annuity, multi-year guaranteed annuity, structured annuity, and multiple life insurance lines’ product sales, the firm looks forward to reporting on immediate annuity and variable annuity product sales in the future.

 

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