Indexed Annuity Sales Have Record Year

Pleasant Hill, Iowa. March 29, 2017- Wink’s Sales & Market Report, the insurance industry’s #1 resource for indexed annuity sales data since 1997, expanded in 2015 for all non-variable deferred annuities which include, indexed annuity, traditional fixed annuity, and multi-year guaranteed annuity (MYGA) product lines.

Fifty-five indexed annuity providers, 48 fixed annuity providers, and 55 MYGA companies participated in the 78th edition of Wink’s Sales & Market Report for 4^th Quarter, 2016. Total fourth quarter non-variable deferred annuity sales were $21.0 billion; down nearly 8.0% from the prior quarter, and down almost 14.0% from the same period a year prior. Overall non-variable deferred annuity sales for 2016 were $96.9 billion.

Noteworthy highlights for non-variable deferred annuities in the fourth quarter include Allianz Life ranking as the #1 carrier overall for non-variable deferred annuity sales, with a market share of 9.1%. Athene USA carried the second position with American Equity Companies, New York Life, and AIG rounding-out the top five carriers in the market. Allianz Life’s Allianz 222 Annuity indexed annuity was the #1 selling non-variable deferred annuity for overall sales in the fourth quarter.

“Indexed annuity sales for 2016 were $58 billion! That tops last year’s record by nearly 10.0%!” stated Sheryl J. Moore, president and CEO of both Moore Market Intelligence and Wink, Inc. She continued, “Although the market stopped short of $60 billion in sales, this is still an impressive feat considering the Department of Labor’s (DOL’s) pending Fiduciary Rule.”

Noteworthy highlights for indexed annuities in the fourth quarter include Allianz Life as the #1 carrier in indexed annuities, with a market share of 14.3%. Athene USA held onto the second-ranked position and rounding out the top five carriers in the market were American Equity Companies, Great American Insurance Group, and AIG respectively. Allianz Life’s Allianz 222 Annuity was the #1 overall selling indexed annuity for the tenth consecutive quarter.

Total fourth quarter traditional fixed annuity sales were just over $1.0 billion; down more than 16.0% when compared to the previous quarter, and down over 63.0% when compared with the same period last year. Noteworthy highlights for fixed annuities in the fourth quarter include Jackson National Life ranking as the #1 carrier in fixed annuities, with a market share of 14.0%. MetLife (known as Brighthouse Financial, today) took the second-ranked position. Great American Insurance Group, Reliance Standard, and Global Atlantic Financial Group rounded out the top five carriers in the market, respectively. Forethought Life’s ForeCare Fixed Annuity was the #1 overall selling fixed annuity for the quarter.

MYGA sales for the fourth quarter were $6.6 billion; down more than 8.0% when compared to the previous quarter, and up over 12.0% when compared to the same period last year. Noteworthy highlights for MYGAs in the fourth quarter include New York Life ranking as the #1 carrier in MYG annuities, with a market share of 19.4%. AIG took the second-ranked position while Global Atlantic Financial Group, Security Benefit Life, and Symetra Financial rounded out the top five carriers in the market, respectively. Security Benefit’s Life RateTrack 5-Year was the #1 overall selling multi-year guaranteed annuity for the quarter.

“It is impressive to see non-variable deferred annuity sales come close to $100 billion for the year,” commented Moore. She continued, “It will be interesting to see how the DOL’s rule impacts sales for 2017.”

Wink looks forward to reporting on even more annuity product lines such as immediate annuities and variable products. Next quarter, Wink looks to expand reporting to traditional universal life and whole life product sales, thereafter, reporting on term life products as well.