Non-Variable Annuity Sales Continue to Climb

News June 04, 2019 at 03:16 PM
Share & Print

Hot air balloons rising into the sky (Photo: Thinkstock) (Photo: Thinkstock)

Sales of U.S. individual, non-variable, deferred annuities are continuing to rise like a hot air balloon that broke free from its rope, according to new survey data from Wink Inc.

Sales climbed to $33 billion in the first quarter, up 45% from the total for the first quarter of 2018, according to new survey data from Wink Inc.

The 45% increase follows a 54% year-over-year sales increase in the fourth quarter of 2018.

Wink bases its quarterly annuity sales reports on data from issuers.

The new report includes figures from 55 fixed annuity providers, 59 indexed annuity providers, 78 multi-year guaranteed annuity (MYGA) contract providers, and 10 structured annuity providers.

Here's a look at how sales of some of the types of annuities Wink tracks changed, year-over-year.

  • Indexed annuities: Up 25%
  • Traditional fixed annuities: Down 8.2%
  • Structured annuities: Up 60%
  • MYGA contracts: Up 80%

A structured annuity is an indexed annuity that shields the holder against a limited amount of decrease in the value of an investment index, or collection of indexes, rather than guaranteeing a minimum rate of return.

A MYGA contract guarantees the user access to a specified, fixed rate of return over a period greater than one year.

Wink also started reporting variable annuity sales data this quarter but has no year-over-year comparison data. Participating issuers said they recorded about $19 billion in variable annuity sales in the first quarter.

Resources

A summary of Wink's latest annuity issuer survey results is available here.

— Read Indexed Life Sales Keep Growing: Winkon ThinkAdvisor.

— Connect with ThinkAdvisor Life/Health on LinkedIn and Twitter.

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Related Stories

Resource Center