By Wire Reports
From Staff and Wire Reports March 20,
2019
Total
fourth-quarter non-variable deferred annuity sales were $32.6 billion, up more
than 10.1 percent over the previous quarter and up more than 54.4 percent over
the same period last year, according to Wink's Sales & Market Report.
Total non-variable
deferred annuities sales for 2018 were $113.6 billion, an increase of 29.1
percent over 2017. Non-variable deferred annuities include the indexed annuity,
traditional fixed annuity, and MYGA product lines.
The industry leader
in indexed annuity sales data since 1997, Wink is in its third year of
reporting on all deferred non-variable annuities. This is the first year for
Wink to report on structured annuities, (indexed-variable annuities, collared
annuities, or buffered annuities).
Noteworthy
highlights for non-variable deferred annuity sales in the fourth quarter
include AIG ranking as the No. 1 carrier overall for non-variable deferred
annuity sales, with a market share of 9.8 percent.
Allianz Life moved
into second place, while Global Atlantic Financial Group, Athene USA and
Massachusetts Mutual Life Companies rounded-out the top five carriers in the
market, respectively. Allianz Life’s Allianz 222 Annuity, an indexed annuity,
was the No. 1 selling non-variable deferred annuity, for all channels combined,
in overall sales.
Sixty indexed
annuity providers, 54 fixed annuity providers, 68 MYGA providers, and ten
structured annuity companies participated in the 86th edition of Wink’s Sales
& Market Report for the fourth quarter, 2018.
Booming
Indexed Annuity Sales
Indexed annuity
sales for the fourth quarter were $19.2 billion, up more than 8.4 percent
compared to the previous quarter, and up 40.9 percent compared with the same
period last year.
Total indexed
annuity sales for 2018 were $68.4 billion, an increase of over 26.8 percent
from the previous 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.
“Indexed annuity
sales beat their prior record by nearly 18%!” said Sheryl J. Moore, president
and CEO of both Moore Market Intelligence and Wink, Inc. “While sales were down
for 2017 because of the Department of Labor, this year’s sales have more than
made-up for last year’s loss in sales.”
Noteworthy
highlights for indexed annuities in the fourth quarter include Allianz Life
retaining their No. 1 ranking in indexed annuities, with a market share of 13.6
percent. Athene USA held the second-ranked position while AIG, Pacific Life
Companies, and Nationwide rounded-out the top five carriers in the market,
respectively.
Allianz Life’s
Allianz 222 Annuity was the No. 1 selling indexed annuity, for all channels
combined, for the eighteenth consecutive quarter.
Strong
Fixed Annuity Numbers
Traditional fixed
annuity sales in the fourth quarter were $1.1 billion, up 15.9 percent compared
to the previous quarter, and up more than 56.8 percent compared with the same
period last year.
Total traditional
fixed annuity sales for 2018 were $3.8 billion, an increase of 5.1 percent over
the previous year. Traditional fixed annuities have a fixed rate that is
guaranteed for one year only.
Noteworthy
highlights for traditional fixed annuities in the fourth quarter include AIG
ranking as the No. 1 carrier in fixed annuities, with a market share of 13.1
percent. Jackson National Life ranked second and Modern Woodmen of America,
Global Atlantic Financial Group, and Great American Insurance Group rounded-out
the top five carriers in the market, respectively.
Forethought Life’s
ForeCare Fixed Annuity was the No. 1 selling fixed annuity for the quarter, for
all channels combined, for the eleventh consecutive quarter.
'Unprecedented'
MYGA Sales
Multi-year
guaranteed annuity (MYGA) sales in the fourth quarter were $12.2 billion, up
over 12.3 percent compared to the previous quarter, and up more than 81.3
percent compared to the same period last year.
Total MYGA sales
for 2018 were $41.3 billion, a 36.1 percent increase over the previous year.
MYGAs have a fixed rate that is guaranteed for more than one year.
“Every single
company in the top 15 experienced increases in MYGA sales; that is
unprecedented!” Moore said.
Noteworthy
highlights for MYGAs in the fourth quarter include New York Life ranked as the
No. 1 carrier, with a market share of 13 percent. Global Atlantic Financial
Group continued in the second-ranked position, while AIG, Massachusetts Mutual
Life Companies, and Symetra Financial rounded-out the top five carriers in the
market, respectively.
Massachusetts
Mutual Life Stable Voyage 3-Year was the No. 1 selling multi-year guaranteed
annuity for the quarter, for all channels combined.
Structured
Annuities
Structured annuity
sales in the fourth quarter were $4.1 billion, up more than 19.4 percent
compared to the previous quarter. Total structured annuity sales for 2018 were
$12.2 billion; this is the first year that Wink has reported on structured
annuity sales.
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 fourth quarter include AXA US
ranking as the No. 1 carrier in structured annuities, with a market share of
40.8 percent. Brighthouse Life Shield Level Select 6-Year was the No. 1 selling
structured annuity for the quarter, for all channels combined for the fourth
consecutive quarter.
While Wink
currently reports on indexed annuity, fixed annuity, multi-year guaranteed
annuity, structured annuity, and multiple life insurance lines’ product sales,
the firm looks forward to reporting on variable annuity sales beginning in the
first quarter of 2019, Moore said.
Sales reporting on
additional product lines will follow at some point in the future.
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