Majority Of Indexed Annuity Carriers Struggle With 1Q Sales

Pleasant Hill, Iowa. May 24, 2017- Wink’s Sales & Market Report 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, 51 fixed annuity providers, and 56 MYGA companies participated in the 79^th edition of Wink’s Sales & Market Report for 1^st Quarter, 2017. Total first quarter non-variable deferred annuity sales were $23.0 billion; up over 9.7% from the prior quarter, and down almost 15.0% from the same period a year prior.

Noteworthy highlights for non-variable deferred annuities in the first quarter included New York Life ranking as the #1 carrier overall for non-variable deferred annuity sales, with a market share of 9.6%. Allianz Life carried the second position with AIG, Great American, and Global Atlantic rounding-out the top five carriers in the market, respectively. Allianz Life’s Allianz 222 Annuity indexed annuity was the #1 selling non-variable deferred annuity for overall sales in the first quarter.

Total first quarter indexed annuity sales were just over $12.9 billion; down almost 3.0% when compared to the previous quarter, and down over 14.3% when compared with the same period last year.

“The Department of Labor’s Fiduciary Rule is imminent, and taking a toll on indexed annuity sales” exclaimed Sheryl J. Moore, president and CEO of both Moore Market Intelligence and Wink, Inc. She continued, “Insurance distributors have been so busy preparing for the Rule that they haven’t been able to focus on marketing products. Sales show it.”

Noteworthy highlights for indexed annuities in the first quarter included Allianz Life retaining their #1 ranking in indexed annuities, with a market share of 13.1%. American Equity moved into the second-ranked position and rounding-out the top five carriers in the market were Athene USA, Nationwide, and Great American Insurance Group, respectively. Allianz Life’s Allianz 222 Annuity was the #1 selling indexed annuity, for all channels combined, for the eleventh consecutive quarter.

Total first quarter traditional fixed annuity sales were just over $1.1 billion; up more than 5.5% when compared to the previous quarter, and down over 6.4% when compared with the same period last year. Noteworthy highlights for fixed annuities in the first quarter include Jackson National Life ranking as the #1 carrier in fixed annuities, with a market share of 13.2%. Modern Woodmen of America attained the second-ranked position. Great American, 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 selling fixed annuity for the quarter, for all channels combined.

MYGA sales for the first quarter were over $8.9 billion; up more than 35.6% when compared to the previous quarter, and down nearly 16.7% when compared to the same period last year. Noteworthy highlights for MYGAs in the first quarter include New York Life ranking as the #1 carrier in MYG annuity sales, with a market share of 24.6%.  AIG held onto the second-ranked position while Global Atlantic Financial Group, Symetra Financial, and Security Benefit Life 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 quarter, for all channels combined.

“While an increase in sales of more than 35% may seem significant to the MYGA market, one has to consider the interest rate environment” commented Moore. She continued, “Most companies experienced annuity rate increases during the first quarter, as a result of the Federal Reserve’s two increases in the benchmark rate during the same period. This directly benefitted MYGA sales.”

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.

****

For more information, go to www.LookToWink.com