Indexed Annuity Sales Up By Double Digits In 2Q

Des Moines, Iowa. August 22, 2017- Wink’s Sales & Market Report, the insurance industry’s #1 resource for indexed annuity sales data since 1997, its beginning 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.

Fifty-four indexed annuity providers, 52 fixed annuity providers, and 56 MYGA companies participated in the 80^th edition of Wink’s Sales & Market Report for 2^nd Quarter, 2017. Total second quarter non-variable deferred annuity sales were over $23.5 billion; up over 2.2% from the prior quarter, and down over 9.3% from the same period a year prior.

Noteworthy highlights for all non-variable deferred annuities in the second quarter included Allianz Life ranking as the #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 Annuity indexed annuity was the #1 selling non-variable annuity, for all channels combined, in overall sales in the second quarter.

Indexed annuity total sales for the second quarter were just over $14.6 billion; up more than 13.3% when compared to the previous quarter, and down nearly 6.0% 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” exclaimed Sheryl J. Moore, president and CEO of both Moore Market Intelligence and Wink, Inc. She continued, “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 their #1 ranking in indexed annuities, with a market share of 15.0%. Athene USA took the second ranked position and rounding-out the top five carriers in the market were Nationwide, 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 twelfth consecutive quarter.

Traditional fixed annuity total sales in the second quarter were just over $10.0 billion; down over 7.0% when compared to the previous quarter, and down nearly 39.0% 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 #1 carrier in fixed annuities, 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 #1 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% when compared to the previous quarter, and down nearly 11.0% 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 #1 carrier in MYG annuity sales, with a market share of 21.8%.  Global Atlantic moved into the second-ranked position while AIG, Delaware Life, and Symetra Financial rounded-out the top five carriers in the market, respectively. Forethought’s SecureFore 3 Fixed Annuity was the #1 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” commented Moore. She continued, “This trend should change next quarter for multi-year guaranteed rate fixed products, as several MYGA rate specials occurred in the second quarter.”

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’s Sales & Market Report last expanded their sales reporting to include traditional universal life and whole life product sales, in addition to indexed universal life, in the first quarter of 2017. Term life product sales will follow in upcoming quarters.

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