In 2016, total fixed annuity sales hit a record-breaking
After strong results in the first three quarters, fixed annuity sales fell 13 percent to
"Unlike the last several years where indexed annuities propelled overall fixed annuity growth, in 2016, fixed-rate deferred was the primary driver of fixed sales in 2016," said
In the fourth quarter, sales of fixed-rate deferred annuities, (Book Value and MVA) fell 9 percent, to
As projected by the Institute, fixed indexed annuity (FIA) sales also hit record levels in 2016, up 12 percent to
"Despite lower than expected sales in fourth quarter (down 13 percent from prior year), fixed annuities held on to break its 2015 sales record. This marks the ninth consecutive year of growth for FIAs," noted Giesing. "We have noticed FIA sales have declined quarter over quarter since the
Despite the 85 basis point jump in the 10-year
Deferred income annuity (DIA) sales fell 30 percent in the fourth quarter to
"Until yields come up, consumers are going to resist giving up liquidity for the guaranteed income offered through income annuities," said Giesing. "That said, demographics are in our favor, we expect slow steady growth in the income annuity market.
Variable annuity sales totaled
"Aside from the DOL fiduciary rule, one of the factors driving
Total annuity sales were
To view the fourth quarter results, please visit 2016 Annuity Industry Estimates. To view variable, fixed and total annuity sales over the past 10 years, please visit Annuity Sales 2007-2016. The Institute will release the top 20 annuity manufacturer rankings in mid-March, following the last scheduled earnings release from survey participants.
[Category: Financial Services]