3Q Annuity Sales Reveal Good News, So-So News Amid Pandemic

By Staff Reports

Third-quarter annuity sales numbers included some good news, and some so-so news. Wink reports that deferred annuities sales came to $54.2 billion, an increase of more than 18% over the devastating second quarter.

However, the $54.2 billion is still a decline of 1.1% when compared to the same period last year, said Sheryl J. Moore, president and CEO of both Moore Market Intelligence and Wink, Inc.

“Sales are up for all product lines from last quarter, but sales compared to last year are still down double-digits for most annuity types,” she said. “The exception to that is MYGA sales and the lesser structured annuity sales, which are both UP double-digits!”

Noteworthy highlights for all deferred annuity sales in the third quarter include Jackson National Life ranking as the No. 1 carrier overall for deferred annuity sales, with a market share of 8.4%. Sammons Financial Companies followed in second place, while AIG, Lincoln National Life, and Athene USA rounded out the top five carriers in the market, respectively.

Jackson National’s Perspective II Flexible Premium Variable & Fixed Deferred Annuity, a variable annuity, was the No. 1 selling deferred annuity, for all channels combined in overall sales for the seventh consecutive quarter.

Total third-quarter non-variable deferred annuity sales were $30.9 billion, up 19.5% when compared to the previous quarter and up 7.1% 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 non-variable deferred annuity sales in the third quarter include Sammons Financial Companies ranking as the No. 1 carrier overall for non-variable deferred annuity sales, with a market share of 12.4%.

Athene USA moved into second place, while AIG, Massachusetts Mutual Life Companies, and Global Atlantic Financial Group rounded out the top five carriers in the market, respectively. Massachusetts Mutual Life’s Stable Voyage 3-Year, a multi-year guaranteed annuity, was the No. 1 selling non-variable deferred annuity, for all channels combined in overall sales for the second consecutive quarter.

Total third-quarter variable deferred annuity sales were $23.2 billion, an increase of 15.6% when compared to the previous quarter and a decline of 10.4% when compared to the same period last year. Variable deferred annuities include the structured annuity and variable annuity product lines.

Noteworthy highlights for variable deferred annuity sales in the third quarter include Jackson National Life ranking as the No. 1 carrier overall for variable deferred annuity sales, with a market share of 19.1%.

Lincoln National Life moved into the second-place position, as Equitable Financial, Brighthouse Financial, and Prudential rounded-out the top five carriers in the market, respectively. Jackson National’s Perspective II Flexible Premium Variable & Fixed Deferred Annuity, a variable annuity, was the No. 1 selling variable deferred annuity, for all channels combined in overall sales for the seventh consecutive quarter.

Indexed annuity sales for the third quarter were $13.7 billion, up 7.5% when compared to the previous quarter, and down 26.1% 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.

Noteworthy highlights for indexed annuities in the third quarter include Athene USA retaining the No. 1 ranking in indexed annuities, with a market share of 11%. Allianz Life remained in the second-ranked position while Sammons Financial Companies, AIG, and Fidelity and Guaranty Life rounded-out the top five carriers in the market, respectively.

Allianz Life’s Allianz 222 Annuity was the No. 1 selling indexed annuity, for all channels combined, for the twenty-first consecutive quarter.

Traditional fixed annuity sales in the third quarter were $488.57 million. Sales were up 14.7% when compared to the previous quarter, and down 32.7% 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 third quarter include Modern Woodmen of America ranking as the No. 1 carrier in fixed annuities, with a market share of 14.4%. Global Atlantic Financial Group ranked second while EquiTrust, Jackson National Life, and National Life Group rounded out the top five carriers in the market, respectively. Forethought Life ForeCare Fixed Annuity was the No. 1 selling fixed annuity, for all channels combined.

Multi-year guaranteed annuity (MYGA) sales in the third quarter were $16.6 billion, up 32.9% when compared to the previous quarter, and up 69.7% 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 third quarter include Sammons Financial Companies ranking as the No. 1 carrier, with a market share of 16.5%. Massachusetts Mutual Life Companies moved to the second-ranked position, as New York Life, Global Atlantic Financial Group, and AIG rounded-out the top five carriers in the market, respectively.

Massachusetts Mutual Life Stable Voyage 3-Year was the No. 1 selling multi-year guaranteed annuity for the fourth consecutive quarter, for all channels combined.

“It is very telling how consumers’ demand for guarantees continues to be emphasized through the sales of MYGA products," Moore said. "Three of the top ten companies in this market had sales increases in excess of 1,000%!”

Structured annuity sales in the third quarter were $6.2 billion, up 38.1% as compared to the previous quarter, and up 30.4% as compared to the previous year. 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 third quarter include Lincoln National Life ranking as the No. 1 carrier in structured annuities, with a market share of 24.5%. Allianz Life ranked second, while Equitable Financial, Brighthouse Financial, and Prudential rounded-out the top five carriers in the market, respectively. Lincoln National Life Level Advantage B Share was the No. 1 selling structured annuity for the third consecutive quarter, for all channels combined.

Variable annuity sales in the third quarter were $17 billion, an increase of 9.1% as compared to the previous quarter and a decline of 19.6% as compared to the same period last year. Variable annuities have no floor, and potential for gains/losses that are determined by the performance of the subaccounts that may be invested in an external index, stocks, bonds, commodities, or other investments.

Noteworthy highlights for variable annuities in the third quarter include Jackson National Life continuing their ranking as the #1 carrier in variable annuities, with a market share of 26.1%. Equitable Financial ranked second, while Nationwide, New York Life, and Lincoln National Life rounded-out the top five carriers in the market, respectively. Jackson National’s Perspective II Flexible Premium Variable & Fixed Deferred Annuity was the No. 1 selling variable annuity for the seventh consecutive quarter, for all channels combined.

“Structured annuities continue to experience record sales in a linear fashion, but appear to be accelerating sales at a pace that is more swift than indexed annuities, at their same point in the annuity product life cycle,” Moore said. “Continued increases in sales of these products will reduce the deferred annuity market share that is attributable to both variable and indexed annuities."

Wink reports on indexed annuity, fixed annuity, multi-year guaranteed annuity, structured annuity, variable annuity, and multiple life insurance lines’ product sales. Sixty-two indexed annuity providers, 47 fixed annuity providers, 69 multi-year guaranteed annuity (MYGA) providers, 13 structured annuity providers, and 46 variable annuity providers participated in the 93rd edition of Wink’s Sales & Market Report for 3rd Quarter 2020.

Sales reporting on additional product lines will follow in the future, Moore said.