MYGA sales power 2Q, Wink reports, overcoming variable sales decline

Total second-quarter sales for all deferred annuities were $72.8 billion, an increase of 21.9% when compared to the previous quarter and an increase of more than 12.8% when compared to the same period last year, according to Wink’s Sales & Market Report.

Sales were powered by an 80% increase in multi-year guaranteed annuities, while variable product sales were down again.

All deferred annuities include the variable annuity, structured annuity, indexed annuity, traditional fixed annuity, and MYGA product lines.

Noteworthy highlights for all deferred annuity sales in the second quarter include New York Life ranking as the No. 1 carrier overall for deferred annuity sales, with a market share of 8.5%. Massachusetts Mutual Life Companies moved into second place, while Jackson National Life, Equitable Financial, and Allianz Life rounded out the top five carriers in the market, respectively.

Western-Southern Life’s SmartSelect 3-Year, a MYGA, was the No. 1 selling deferred annuity, for all channels combined in overall sales.

Total second quarter non-variable deferred annuity sales were $46.3 billion, an increase of 46% when compared to the previous quarter and an increase of 46.7% when compared to the same period last year. Non-variable deferred annuities include the indexed annuity, traditional fixed annuity, and MYGA product lines.

Noteworthy highlights for non-variable deferred annuity sales in the second quarter include New York Life ranking as the No. 1 carrier overall for non-variable deferred annuity sales, with a market share of 10.6%. Mutual Life Companies moved into second place while Athene USA, AIG, and Western-Southern Life Assurance Company completed the top five carriers in the market, respectively.

Western-Southern life’s SmartSelect 3-Year, a MYGA, was the No. 1 selling non-variable deferred annuity, for all channels combined for the second consecutive quarter.

Total second quarter variable deferred annuity sales were $26.4 billion, down 5.4% when compared to the previous quarter and down 19.6% when compared to the same period last year.

Variable deferred annuities include structured annuity and variable annuity product lines.
Noteworthy highlights for variable deferred annuity sales in the second quarter include Jackson National Life ranking as the No. 1 carrier overall for variable deferred annuity sales, with a market share of 15.3%. Equitable Financial held onto the second-place position, as Lincoln National Life, Brighthouse Financial, and Prudential concluded the top five carriers in the market, respectively.

Jackson National’s Perspective II Flexible Premium Variable & Fixed Deferred Annuity, a variable annuity, was the No. 1 selling variable deferred annuity, for all channels combined in overall sales for the fourteenth consecutive quarter.

Indexed annuity sales for the second quarter were $19.5 billion, up 17.4% when compared to the previous quarter, and up more than 17.4% when compared with the same period last year. Indexed annuities have a floor of no less than zero percent and limited excess interest that is determined by the performance of an external index, such as Standard and Poor’s 500.

Noteworthy highlights for indexed annuities in the second quarter include Allianz Life ranking as the No. 1 seller of indexed annuities, with a market share of 12.7%. Athene USA moved into the second-ranked position while AIG, Massachusetts Mutual Life Companies, and Sammons Financial Companies rounded out the top five carriers in the market, respectively. Allianz Life’s Allianz 222 was the No. 1 selling indexed annuity, for all channels combined.

Sheryl Moore, CEO of both Wink, Inc. and Moore Market Intelligence: “For the first time, banks sold more annuities than any distribution channel. That is an amazing testament to the strength of fixed annuity rates, as compared to certificates of deposit.”

Traditional fixed annuity sales in the second quarter were $479.2 million. Sales were up more than 3.3% when compared to the previous quarter, and up 3.7 % when compared with the same period last year. Traditional fixed annuities have a fixed rate that is guaranteed for one year only.

Noteworthy highlights for traditional fixed annuities in the second quarter include Modern Woodmen of America ranking as the No. 1 carrier in fixed annuities, with a market share of 18.5%. Global Atlantic Financial Group ranked second, while American National, Western-Southern Life Insurance Company, and Jackson National Life rounded out the top five carriers in the market, respectively. Forethought Life’s ForeCare Fixed Annuity was the No. 1 selling fixed annuity, for all channels combined for the eighth consecutive quarter.

Multi-year guaranteed annuity [MYGA] sales in the second quarter were $26.2 billion. Sales were up more than 79.9% when compared to the previous quarter, and up 81.8% when compared to the same period last year. MYGAs 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 No. 1 carrier, with a market share of 18.8%. Massachusetts Mutual Life Companies maintained the second-ranked position, while Western-Southern Life Assurance Company, Pacific Life Companies, and AIG rounded out the top five carriers in the market, respectively. Western-Southern Life’s SmartSelect 3-Year was the No. 1 selling multi-year guaranteed annuity for all channels combined for the second consecutive quarter.

“Multi-Year Guaranteed Annuity sales exploded again this quarter,” Moore said. “Given the most recent rate environment, I project that we can count on next quarter’s MYGA sales being significant as well.”

Structured annuity sales in the second quarter were $10.5 billion. Sales were up more than 11.1% as compared to the previous quarter, and up 6.7% as compared to the previous year. Structured annuities have a limited negative floor and limited excess interest that is determined by the performance of an external index or subaccounts.

Noteworthy highlights for structured annuities in the second quarter include Equitable Financial ranking as the No. 1 carrier in structured annuity sales, with a market share of 21.9%. Brighthouse Financial ranked second, while Allianz Life, Prudential, and Lincoln National Life completed the top five carriers in the market, respectively. Equitable Financial’s Structured Capital Strategies Plus 21 was the No. 1 selling structured annuity for all channels combined for the quarter.

Variable annuity sales in the second quarter were $15.9 billion, down 13.9% as compared to the previous quarter and down more than 30.8% as compared to the same period last year. Variable annuities have no floor, and the potential for gains/losses is determined by the performance of the subaccounts that may be invested in an external index, stocks, bonds, commodities, or other investments.

Noteworthy highlights for variable annuities in the second quarter include Jackson National Life ranking as the No. 1 carrier in variable annuities, with a market share of 22.4%. Equitable Financial ranked second, while New York Life, Nationwide, and Lincoln National Life finished out as the top five carriers in the market, respectively. Jackson National’s Perspective II Flexible Premium Variable & Fixed Deferred Annuity was the No. 1 selling variable annuity for the fourteenth consecutive quarter, for all channels combined.

Sixty-two indexed annuity providers, 42 fixed annuity providers, 69 multi-year guaranteed annuity (MYGA) providers, 17 structured annuity providers, and 43 variable annuity providers participated in the report.

Wink reports on indexed annuity, fixed annuity, multi-year guaranteed annuity, structured annuity, variable annuity, and multiple life insurance lines’ product sales. Sales reporting on additional product lines will follow in the future, Moore said.