Annuity Sales Dive In 3Q

Des Moines, Iowa. - Fifty-seven indexed annuity providers, 53 fixed annuity providers, and 57 MYGA companies participated in the 81^st edition of Wink’s Sales & Market Report for 3^rd Quarter, 2017. Total third quarter non-variable deferred annuity sales were over $20.2 billion; down 14.0% from the prior quarter, and down 11.1% from the same period a year prior.

Noteworthy highlights for all non-variable deferred annuities in the third quarter included Allianz Life ranking as the #1 carrier overall for non-variable deferred annuity sales, with a market share of 9.4%. New York Life carried the second position with Global Atlantic Financial Group, Athene USA, and AIG rounding-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 total sales for the third quarter were over $12.7 billion; down 12.6% when compared to the previous quarter, and down 10.5% when compared with the same period last year.

“Rates have increased substantially on certificates of deposits from last quarter, and the market is on the rise,” commented Sheryl J. Moore, president and CEO of both Moore Market Intelligence and Wink, Inc. She continued, “There is typically an inverse relationship between sales of fixed and indexed annuities, as compared to CD rates. Likewise, whenever the market is on the rise, that hurts sales of these products as well.”

Noteworthy highlights for indexed annuities in the third quarter included Allianz Life retaining their #1 ranking in indexed annuities, with a market share of 14.9%. Nationwide moved into the second-ranked position and rounding-out the top five carriers in the market were Athene USA, American Equity Companies, and Great American Insurance Group, respectively. Allianz Life’s Allianz 222 Annuity was the #1 selling indexed annuity, for all channels combined, for the thirteenth consecutive quarter.

Traditional fixed annuity total sales in the third quarter were over $809.5 million; down 20.7% when compared to the previous quarter, and down 35.9% 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 third quarter include Jackson National Life ranking as the #1 carrier in fixed annuities, with a market share of 16.5%. Modern Woodmen of America continued in the second-ranked position. Global Atlantic Financial Group, Reliance Standard, and Great American Insurance Group 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.

MYGA sales for the third quarter were over $6.6 billion; down 15.7% when compared to the previous quarter, and down 7.9% 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 third quarter include New York Life ranking as the #1 carrier in MYG annuity sales, with a market share of 25.1%.  Global Atlantic Financial Group continued in the second-ranked position while AIG, Security Benefit Life, and Delaware Life rounded-out the top five carriers in the market, respectively. Forethought’s SecureFore 5 Fixed Annuity was the #1 selling multi-year guaranteed annuity for the quarter, for all channels combined.

“Despite the unfavorable market conditions for annuity sales, I still anticipate that fourth quarter will be strong” commented Moore. She continued, “When you look at the cyclical nature of annuity sales, the fourth quarter is always robust.”

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. Wink will begin this process by requesting sales of indexed variable annuities (a.k.a. structured variable annuities, collared variable annuities, and buffered variable annuities) beginning first quarter, 2018.