In June, annuity inflows decreased by 9.7 percent to $7.2 billion from $7.9 billion in May, reports the Depository Trust & Clearing Corp.'s (DTCC) Insurance & Retirement Services (I&RS) first-half account of annuity activity.
Looking over the first six months of this year, inflows totaled nearly $45 billion, an uptick of 4 percent, or $1.7 billion, compared to the first half of 2012. Outflows (annuity contract terminations) came in at $41 billion, rising by more than 13 percent, or $4.8 billion, from the same time last year. Consequently, net cash flows declined more than 46 percent to a total of $3.6 billion in the first half of this year when measured against the first six months of 2012.
When compared to the second half of 2012, inflows climbed upward by 6 percent; outflows increased by 9 percent and net flows fell by just under 20 percent.
The DTCC report points out that although inflows dropped between May and June, inflows actually increased by 3.4 percent when compared to June 2012. Also of note in the latest compilation is that outflows for June decreased by 11.7 percent versus May, falling from $7.3 billion in May to $6.4 billion in June. Accordingly, net flows rose by 12 percent to $780 million from $697 million.
Culling data from 112 insurance companies (representing 43 parent/holding companies), 128 distributors and 3,236 annuity products, DTCC's National Securities Clearing Corp. subsidiary tallied more than $85 billion in annuity product transactions in the first half of this year.
