5 Trends in Today's Annuity Market: Equitable

Equitable is one of the life insurers shaping the individual annuity market. It created the modern registered index-linked annuity product category.

The insurer is now working with BlackRock and its own corporate sibling, AllianceBernstein, to create retirement plan options that combine a target-date fund with an in-plan annuity. It hopes that kind of package will become the strategy of choice for workers who really aren’t sure what to do with their nest eggs.

Executives from Equitable’s parent, Equitable Holdings, on Wednesday gave securities analysts a look at how they see the annuity market performing now.

See the accompanying gallery for five topics they discussed.

What it means: What Equitable thinks about the life and annuity market could have a direct effect on clients’ product menus and how Wall Street investors see what you do and what kinds of products your clients use.

The earnings: Equitable Holdings held the call to go over second-quarter earnings with the analysts.

The New York-based company is reporting $565 million in net income income for the latest quarter on $3.5 billion in revenue, compared with $831 million in net income on $2.4 billion in revenue for the second quarter of 2023.

Operating income, which excludes changes in the estimated value of assets, derivatives and benefits, increased to $494 million, from $441 million.

Individual annuity sales increased 23%, to $4.5 billion.

The new in-plan annuity programs helped increase group retirement sales to $950 million, from $370 million.

First-year premiums and deposits for life insurance and other protection products rose 13%, to $121 million.

At the wealth management business, sales rose 43% through the advisory channel, 26% through the brokerage and direct channels, and 8.5% through retirement programs.

Credit: ALM