Variable Annuities Show Slight Gains In 3Q, Wink Reports - InsuranceNewsNet

Get the magazine read by the nation’s top 1% of producers delivered to your door monthly. Subscribe Now

InsuranceNewsNet

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Top Stories
Topics
  • Life Insurance
  • Annuity News
  • Health/Employee Benefits
  • Property & Casualty
  • Advisor News
  • Washington Wire
  • Sponsored Content
  • INN Exclusives
  • Newswires
  • INNsider
  • INN Exclusives
  • NewsWires
  • Magazine
Sign in or register to be an INNsider.
  • INN Exclusives
  • NewsWires
  • ★ Regulation News
  • Magazine
  • About
  • Advertise
  • Editorial Staff
  • Contact
  • Susbcribe

Get Social

  • Facebook
  • Twitter
  • LinkedIn
  • Google+
Insider
Top Stories
Top Stories RSS Get our newsletter
Order Prints Share
November 26, 2019 Top Stories No comments Views: 699

Variable Annuities Show Slight Gains In 3Q, Wink Reports

By Staff Reports
Annuities are attractive for advisors and clients because they offer income retirees cannot outlive.

Variable annuity sales in the third quarter were $21.2 billion, an increase of 1% as compared to the previous quarter, according to Wink’s Sales & Market Report.

Annuity sales were down across most product lines in the third quarter, Wink reported.

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.

Third-quarter sales for all deferred annuities were $55.2 billion, a decline of 5.2% when compared to the previous quarter.

Noteworthy highlights for all deferred annuity sales include Jackson National Life ranking as the No. 1 carrier overall with a market share of 10.3%. AIG followed in second place, while Allianz Life, Lincoln National Life, and Nationwide 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 third consecutive quarter.

Courtesy of Wink’s Sales & Market Report

Third-quarter non-variable deferred annuity sales were $29.2 billion; down 11.8% when compared to the previous quarter and 1.9% 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 AIG ranking as the No. 1 carrier overall for non-variable deferred annuity sales, with a market share of 9.7%. Allianz Life moved into second place, while Jackson National Life, Athene USA, and Global Atlantic Financial Group rounded-out the top five carriers in the market, respectively.

Allianz Life’s Allianz 222 Annuity, an indexed annuity, was the No. 1 selling non-variable deferred annuity, for all channels combined, in overall sales for the fourteenth consecutive quarter.

Third-quarter variable deferred annuity sales were $25.9 billion; an increase of 3.4% when compared to the previous quarter. Variable deferred annuities include the structured annuity and variable annuity product lines.

“Some may be surprised to see that variable-type products are increasing in sales where fixed product types are not; this is due to structured annuities -- the rising star of deferred annuity offerings,” said Sheryl J. Moore, president and CEO of both Moore Market Intelligence and Wink, Inc.

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 14.4%.

AXS US took second place as Lincoln National Life, Prudential and Brighthouse Financial 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 third consecutive quarter.

 

Indexed annuity sales for the third quarter were $18.6 billion; down 5.1% when compared to the previous quarter, and up 5.5% 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®.

“This was the second strongest quarter ever for indexed annuity sales, despite continued low interest rates and pricing challenges as a result of the market,” Moore said. “That said, I will guarantee that 2019 is going to set an unbelievable record for indexed annuity sales!”

Noteworthy highlights for indexed annuities in the third quarter include Allianz Life retaining their No. 1 ranking in indexed annuities, with a market share of 12.5%. Athene USA held the second-ranked position while AIG, Nationwide, and Jackson National 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 $785.1 million; down 20.1% when compared to the previous quarter, and down 13.6% 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 Woodman of America ranking as the No. 1 carrier in fixed annuities, with a market share of 12.3%.

Jackson National Life ranked second while, Global Atlantic Financial Group, Great American Insurance Group, and OneAmerica rounded-out the top five carriers in the market, respectively. Forethought Life ForeCare Fixed Annuity was the No. 1 selling fixed annuity for the second consecutive quarter, for all channels combined.

Multi-year guaranteed annuity (MYGA) sales in the third quarter were $9.7 billion; down 21.7% when compared to the previous quarter, and down 13% 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 AIG ranking as the No. 1 carrier, with a market share of 13.1%. New York Life moved into the second-ranked position, as Global Atlantic Financial Group, Jackson National Life, and Delaware Life rounded-out the top five carriers in the market, respectively.

Jackson National Life’s JACKSON RateProtector 3-Year was the No. 1 selling multi-year guaranteed annuity for the quarter, for all channels combined.

Structured annuity sales in the third quarter were $4.7 billion; up 15.8% as compared to the previous quarter, and up 60.7% 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.

“Structured annuity sales continue to set records," Moore said. "It is no wonder that we continued to see companies enter this line of business each quarter when you consider that this product mirrors indexed annuities when evaluated at the same point in the product life cycle.”

Noteworthy highlights for structured annuities in the third quarter include AXA US ranking as the No. 1 carrier in structured annuities, with a market share of 27.2%. Brighthouse Life’s Shield Level Select 6-Year was the No. 1 selling structured annuity for the seventh consecutive quarter, for all channels combined.

Wink currently 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 at some point in the future, Moore said.

Sixty-two indexed annuity providers, 50 fixed annuity providers, 68 multi-year guaranteed annuity (MYGA) providers, 11 structured annuity providers, and 47 variable annuity providers participated in the 89th edition of Wink’s Sales & Market Report for the third quarter 2019.

Older

Despite Challenges, ‘Moderate Growth’ Ahead For Life/Health Industry

Newer

3Q Life Insurance Sales Sag Amid Low Rates, Persistent Regulation

Advisor News

  • Vanguard: Expect 2020 U.S. Economic Growth To Tail Off
  • Rep. Waters: House Passes Financial Services Bill Banning Insider Trading
  • Citi Outlook 2020: Global Growth Can Endure Over The Coming Year
  • LPL Financial Launches No-Transaction-Fee, Exchange-Traded Fund Network
  • 16 Year-End Financial Planning Tips From The AICPA
More Advisor News

Annuity News

  • Robert Kerzner Joins PHP Agency’s Board Of Directors
  • Patriot Life Insurance Co. Boosts Life & Annuities Underwriting Capabilities
  • Commentary: Ned Ryerson Is Just As Cool As Gordon Gekko
  • Industry, Consumer Reps Take Final Whack At NAIC Annuity Sales Rule
  • MassMutual Study Finds Employers Worried About Employees’ Financial Woes
More Annuity News

Health/Employee Benefits

  • Rising Prices Drive Up Health Spending, Even As Use Remains Steady
  • US Report: Prescription Drug Prices Down Slightly Last Year
  • Milliman Analysis: Corporate Pension Funding Rises By $15B In November
  • Poll: Most In U.S. Still Favor Private Healthcare, But Numbers Falling
  • Survey: Most Consumers Satisfied With Their Health Insurance
More Health/Employee Benefits

Life Insurance

  • Pacific Life Sells Aviation Capital Group To Tokyo Century Corp.
  • Robert Kerzner Joins PHP Agency’s Board Of Directors
  • Florida Man Convicted Of Murdering Wife For Life Insurance
  • LIMRA: 3Q Life Insurance Sales Driven By 7% Bump In IUL
  • Foresters Financial Updates Underwriting To Cover Pot Smokers
More Life Insurance

Featured Offers

Text Ads

Press ReleasesAll press releases

  • Brookstone Capital Management Expands Darryl Ronconi’s Role, Naming Him President and Chief Operating Officer
  • WoodmenLife Launches Unified Selling Experience for Agents with iPipeline
  • National Western Life Selects Equisoft to Accelerate its Growth Strategy
  • Peter M. Bakker Agency awarded first Insurance Agency Apprenticeship in the State of Connecticut
  • iPipeline’s New Global Website Features Extensive SSG Digital Platform Offering
Add your Press Release >

Topics

  • Life Insurance
  • Annuity News
  • Health/Employee Benefits
  • Property and Casualty News
  • Advisor News
  • Washington Wire
  • Regulation

Top Sections

  • INN Exclusives
  • INN Insider

Our Company

  • About
  • Editorial Staff
  • Advertise
  • Contact

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter Google+
© 2019 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • Sitemap
  • AdvisorNews

Sign in with your INNsider Account

Not registered? Become an INNsider.