Annuity sales for first six months of year at lowest level since 2001
Wink Sales & Market Report: Indexed annuity sales surge in second quarter, but still trail 2016 levels
Total second quarter 2017 non-variable deferred annuity sales totaled just over $23.5 billion; up over 2.2% from the prior quarter, but down over 9.3% from the same period in 2016.
This according to the latest edition of Wink’s Sales & Market Report, released on Aug. 22. Fifty-four indexed annuity providers, 52 fixed annuity providers, and 56 MYGA companies participated in the report.
Allianz Life ranked as the No. 1 carrier overall for non-variable deferred annuity sales, with a market share of 9.3%. New York Life carried the second position with Athene USA, Global Atlantic, and AIG rounding out the top five carriers in the market, respectively.
Allianz Life’s Allianz 222 indexed annuity was the top-selling non-variable annuity, for all channels combined, in overall sales in the second quarter.
Total indexed annuity sales for the second quarter were just over $14.6 billion; up more than 13.3% when compared to the previous quarter, but down nearly 6% when compared with the same period last year.
“It will be interesting to see if the delay on the Department of Labor’s Fiduciary Rule will translate to increased sales of indexed annuities,” said Sheryl J. Moore, president and CEO of both Moore Market Intelligence and Wink, Inc. “Sales are the greatest they have been in a year, but there is still more momentum needed to return indexed annuities to their record-setting sales levels.”
Noteworthy highlights for indexed annuities in the second quarter included Allianz Life retaining its top ranking in indexed annuities, with a market share of 15%. Athene USA, Nationwide, American Equity Companies, and Great American Insurance Group rounded out the top five carriers in the indexed annuity market.
Allianz Life’s Allianz 222 Annuity was the No. 1-selling indexed annuity for the 12th consecutive quarter.
Traditional fixed annuities
Total sales of fixed annuities in the second quarter were just over $10 billion, down over 7% when compared to the previous quarter and down nearly 39% when compared with the same period last year. Traditional fixed annuities have a one-year guaranteed fixed rate.
Noteworthy highlights for traditional fixed annuities in the second quarter include Jackson National Life ranking as the No. 1 carrier with a market share of 14.4%. Modern Woodmen of America attained the second-ranked position. Great American, Global Atlantic Financial Group, and Reliance Standard rounded out the top five carriers in the market, respectively.
Forethought Life’s ForeCare Fixed Annuity was the top-selling fixed annuity for the quarter, for all channels combined.
MYGA sales for the second quarter were over $7.8 billion, down more than 12.4% compared to the previous quarter, and down nearly 11% when compared to the same period last year. MYGA annuities have a fixed rate that is guaranteed for more than one year.
Noteworthy highlights for MYGAs in the second quarter include New York Life ranking as the No. 1 carrier with a market share of 21.8%. Global Atlantic moved into the second position while AIG, Delaware Life, and Symetra Financial rounded out the top five.
Forethought’s SecureFore 3 Fixed Annuity was the best-selling multi-year guaranteed annuity for the second quarter, for all channels combined.
“The interest rate environment is not favorable for sales of fixed and multi-year guaranteed annuities,” Moore said. “This trend should change next quarter for multi-year guaranteed rate fixed products, as several MYGA rate specials occurred in the second quarter.”
Wink’s Sales & Market Report, the insurance industry’s No. 1 resource for indexed annuity sales data since 1997, is in its third year of reporting on all non-variable deferred annuities, which include indexed annuity, traditional fixed annuity, and multi-year guaranteed annuity (MYGA) product lines. While Wink currently reports on indexed annuity, fixed annuity, and multi-year guaranteed annuity product sales, the firm looks forward to reporting on immediate annuity and variable annuity product sales in the future. For more information, go to www.LookToWink.com.
About Moore Market Intelligence: The staff at Des Moines-based Moore Market Intelligence has the combined experience of more six decades working with indexed insurance products. The firm provides services in speaking, research, training, product development, and marketing of indexed annuities and indexed life insurance. Sheryl J. Mooreis president and CEO of this specialized third-party market research firmand the guiding force behind the industry’s most comprehensive life insurance and annuity due diligence tools, AnnuitySpecs and LifeSpecs distributed byWink, Inc. Moore is the author of the quarterlyWink’s Sales & Market Report.
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