Indexed Annuity Sales On Track For A $60B Year

Pleasant Hill, Iowa. December 1st, 2016- Wink’s Sales & Market Report, the insurance industry’s #1 resource for indexed annuity and indexed life sales data since 1997, has entered into its second year 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, 50 fixed annuity providers and 56 MYGA companies participated in the 77th edition of Wink’s Sales & Market Report for 3^rd Quarter, 2016. Total third quarter non-variable deferred annuity sales were $22.8 billion; down over 12.0% from the prior quarter, and up nearly 0.5% from the same period a year prior.

Noteworthy highlights for non-variable deferred annuities in the third quarter include Allianz Life ranking as the #1 carrier overall for non-variable deferred annuity sales, with a market share of 10.7%. Athene USA carried the second position with American Equity Companies, AIG, and Security Benefit Life 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.

Total third quarter indexed annuity sales were $14.3 billion; down nearly 8.0% when compared to the previous quarter, and up more than 3.0% when compared with the same period last year “Indexed annuity sales are on record pace for 2016!” stated Sheryl J. Moore, President and CEO of both Moore Market Intelligence and Wink, Inc. She continued, “I project sales to hit $60 billion for the year!”

Noteworthy highlights for indexed annuities in the third quarter include Allianz Life as the #1 carrier in indexed annuities, with a market share of 17.1%. Athene USA moved into the second-ranked position, and rounding out the top five carriers in the market were American Equity Companies, AIG, and Great American Insurance Group, respectively. Allianz Life’s Allianz 222 Annuity was the #1 selling indexed annuity for the ninth consecutive quarter.

Total third quarter traditional fixed annuity sales were $1.2 billion; down nearly 24.0% when compared to the previous quarter, and down nearly 59.0% when compared with the same period last year. Noteworthy highlights for fixed annuities in the third quarter include Athene USA ranking as the #1 carrier in fixed annuities, with a market share of 31.1%. Jackson National took the second-ranked position. Rounding out the top five carriers in the market were Reliance Standard, Great American Insurance Group, and MetLife, respectively. Forethought Life’s ForeCare Fixed Annuity was the #1 selling fixed annuity.

MYGA sales for the third quarter were $7.2 billion; down more than 18.0% when compared to the previous quarter, and up over 18.0% when compared to the same period last year. Noteworthy highlights for MYGAs in the third quarter include New York Life ranking as the #1 carrier in MYG annuities, with a market share of 17.5%. Security Benefit Life took the second-ranked position. Rounding out the top five carriers in the market were Midland National Life, AIG, and Athene USA, respectively. Security Benefit’s Life RateTrack 5-Year was the #1 selling multi-year guaranteed annuity.

“While fixed annuity sales have been sluggish, MYGA sales are doing fairly well,” commented Moore. She continued, “Banks are driving sales of these products because rates on competing products, such as certificates of deposit (CDs), are still hovering at less than 1%. This is driving sales of these CD-like annuities.”

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