Structured Annuities Trump Indexed Products In 1Q Wink Sales Report

Deferred annuities posted strong first quarter sales of $58.1 billion, an increase of 3.2% over the fourth quarter and up 10.3% from the first quarter 2020, according to Wink’s Sales & Market Report.

The report paints a picture of an industry continuing to recover strongly from the COVID-19 pandemic. As expected, structured annuity sales lead the good news, with year-over-year sales up nearly 86%.

“Things couldn’t look brighter for the structured annuity market,” said Sheryl J. Moore, CEO of both Moore Market Intelligence and Wink, Inc. “My latest forecasts show structured annuity sales eclipsing indexed annuities’ before 2022 closes. Low fixed interest rates and market volatility have not been kind to indexed annuity sales.”

Total deferred annuities include the variable annuity, structured annuity, indexed annuity, traditional fixed annuity, and MYGA product lines.

Noteworthy highlights for all deferred annuity sales in the first quarter include Jackson National Life ranking as the No. 1 carrier overall for deferred annuity sales, with a market share of 8.1%. New York Life continued in second place, while AIG, Equitable Financial, 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, a variable annuity, was the No. 1 selling deferred annuity, for all channels combined in overall sales for the ninth consecutive quarter.

Total first quarter non-variable deferred annuity sales were $28 billion, down 2.8% when compared to the previous quarter and up 5.8% 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 first quarter include New York Life ranking as the No. 1 carrier overall for non-variable deferred annuity sales, with a market share of 8.9%. American Equity Companies moved into second place, while Global Atlantic Financial Group, AIG, and Athene USA completed the top five carriers in the market, respectively.

Allianz Life’s Allianz Benefit Control Annuity, an indexed annuity, was the No. 1 selling non-variable deferred annuity, for all channels combined in overall sales.

Total first quarter variable deferred annuity sales were $30 billion, an increase of 9.4% when compared to the previous quarter and an increase of 17.6% 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 first quarter include Jackson National Life ranking as the No. 1 carrier overall for variable deferred annuity sales, with a market share of 15.5%. Equitable Financial held onto the second-place position, as Lincoln National Life, Nationwide, and Brighthouse Financial concluded 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 ninth consecutive quarter.

Indexed annuity sales for the first quarter were $14.4 billion, down 4.4% when compared to the previous quarter, and down 12.2% 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 first quarter include Athene USA ranking as the No. 1 in indexed annuities, with a market share of 11.6%. AIG retained the second-ranked position while Allianz Life, Fidelity & Guaranty Life and Sammons Financial Companies rounded out the top five carriers in the market, respectively.

Allianz Life’s Allianz Benefit Control Annuity was the No. 1 selling indexed annuity, for all channels combined for the second consecutive quarter.

Traditional fixed annuity sales in the first quarter were $477 million; sales were up 0.6% when compared to the previous quarter, and down 31% 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 Modern Woodmen of America ranking as the No. 1 carrier in fixed annuities, with a market share of 21.7%. Global Atlantic Financial Group ranked second while Jackson National Life, EquiTrust, and Brighthouse Financial rounded out the top five carriers in the market, respectively.

Forethought Life’s ForeCare Fixed Annuity was the No. 1 selling fixed annuity, for all channels combined for the third consecutive quarter.

Multi-year guaranteed annuity (MYGA) sales in the first quarter were $13.2 billion, down 0.1% when compared to the previous quarter, and up 32.4% 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 No. 1 carrier, with a market share of 19%. American Equity Companies took the second-ranked position, as Global Atlantic Financial Group, Symetra Financial, and AIG rounded out the top five carriers in the market, respectively.

Eagle Life’s Eagle Guarantee Focus 3 was the No. 1 selling multi-year guaranteed annuity for all channels combined.

Structured annuity sales in the first quarter were $9 billion, up 7.5% as compared to the previous quarter, and up 85.7% 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 first quarter include Equitable Financial ranking as the No. 1 carrier in structured annuity sales, with a market share of 19.3%. Prudential ranked second, while Allianz Life, Lincoln National Life, and Brighthouse Financial completed the top five carriers in the market, respectively.

Prudential’s Prudential FlexGuard Indexed Variable Annuity was the No. 1 selling structured annuity for all channels combined, for the second consecutive quarter.

Variable annuity sales in the first quarter were $21 billion, an increase of 9.9% as compared to the previous quarter and an increase of 1.3% 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 first quarter include Jackson National Life ranking as the No. 1 carrier in variable annuities, with a market share of 22.2%. Nationwide ranked second, while Equitable Financial, Lincoln National Life, and Pacific Life Companies finished 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 ninth consecutive quarter, for all channels combined.

Sixty-one indexed annuity providers, 46 fixed annuity providers, 66 multi-year guaranteed annuity providers, 14 structured annuity providers, and 43 variable annuity providers participated in the 95th edition of Wink’s Sales & Market Report for 1st Quarter, 2021.

Wink reports on indexed annuity, fixed annuity, multi-year guaranteed annuity, structured annuity, variable annuity, and multiple life insurance lines’ product sales. Sales reporting on additional product lines will follow in the future, Moore said.

This report compiled by InsuranceNewsNet staff.