Variable
annuity sales in the third quarter were $21.2 billion, an increase of 1% as
compared to the previous quarter, according to Wink’s Sales & Market
Report.
Annuity
sales were down across most product lines in the third quarter, Wink reported.
Variable
annuities have no floor, and potential for gains/losses that are determined by
the performance of the subaccounts that may be invested in an external index,
stocks, bonds, commodities, or other investments.
Third-quarter sales for all deferred annuities were $55.2
billion, a decline of 5.2% when compared to the previous quarter.
Noteworthy
highlights for all deferred annuity sales include Jackson National Life ranking
as the No. 1 carrier overall with a market share of 10.3%. AIG followed in
second place, while Allianz Life, Lincoln National Life, and Nationwide
rounded-out 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 deferred annuity, for all
channels combined in overall sales for the third consecutive quarter.
Courtesy of Wink’s Sales & Market Report
Third-quarter
non-variable deferred annuity sales were $29.2 billion; down 11.8% when
compared to the previous quarter and 1.9% 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 third quarter include
AIG ranking as the No. 1 carrier overall for non-variable deferred annuity
sales, with a market share of 9.7%. Allianz Life moved into second place, while
Jackson National Life, Athene USA, and Global Atlantic Financial Group
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 for
the fourteenth consecutive quarter.
Third-quarter
variable deferred annuity sales were $25.9 billion; an increase of 3.4% when
compared to the previous quarter. Variable deferred annuities include the
structured annuity and variable annuity product lines.
“Some
may be surprised to see that variable-type products are increasing in sales
where fixed product types are not; this is due to structured annuities -- the
rising star of deferred annuity offerings,” said Sheryl J. Moore, president and
CEO of both Moore Market Intelligence and Wink, Inc.
Noteworthy
highlights for variable deferred annuity sales in the third quarter include
Jackson National Life ranking as the No. 1 carrier overall for variable
deferred annuity sales, with a market share of 14.4%.
AXS US
took second place as Lincoln National Life, Prudential and Brighthouse
Financial rounded-out 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 third consecutive quarter.
Indexed
annuity sales for the third quarter were $18.6 billion; down 5.1% when compared
to the previous quarter, and up 5.5% 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®.
“This
was the second strongest quarter ever for indexed annuity sales, despite
continued low interest rates and pricing challenges as a result of the market,”
Moore said. “That said, I will guarantee that 2019 is going to set an
unbelievable record for indexed annuity sales!”
Noteworthy
highlights for indexed annuities in the third quarter include Allianz Life
retaining their No. 1 ranking in indexed annuities, with a market share of
12.5%. Athene USA held the second-ranked position while AIG, Nationwide, and
Jackson National Life 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 twenty-first consecutive quarter.
Traditional fixed annuity sales in the third quarter were $785.1
million; down 20.1% when compared to the previous quarter, and down 13.6% 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 third quarter include Modern
Woodman of America ranking as the No. 1 carrier in fixed annuities, with a
market share of 12.3%.
Jackson
National Life ranked second while, Global Atlantic Financial Group, Great
American Insurance Group, and OneAmerica rounded-out the top five carriers in
the market, respectively. Forethought Life ForeCare Fixed Annuity was the No. 1
selling fixed annuity for the second consecutive quarter, for all channels
combined.
Multi-year guaranteed annuity (MYGA) sales in the third quarter
were $9.7 billion; down 21.7% when compared to the previous quarter, and down
13% 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 third quarter include AIG ranking as the No. 1
carrier, with a market share of 13.1%. New York Life moved into the
second-ranked position, as Global Atlantic Financial Group, Jackson National
Life, and Delaware Life rounded-out the top five carriers in the market,
respectively.
Jackson
National Life’s JACKSON RateProtector 3-Year was the No. 1 selling multi-year
guaranteed annuity for the quarter, for all channels combined.
Structured annuity sales in the third quarter were $4.7 billion;
up 15.8% as compared to the previous quarter, and up 60.7% 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.
“Structured
annuity sales continue to set records," Moore said. "It is no wonder
that we continued to see companies enter this line of business each quarter
when you consider that this product mirrors indexed annuities when evaluated at
the same point in the product life cycle.”
Noteworthy
highlights for structured annuities in the third quarter include AXA US ranking
as the No. 1 carrier in structured annuities, with a market share of 27.2%.
Brighthouse Life’s Shield Level Select 6-Year was the No. 1 selling structured
annuity for the seventh consecutive quarter, for all channels combined.
Wink currently 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 at some point in the future, Moore said.
Sixty-two
indexed annuity providers, 50 fixed annuity providers, 68 multi-year guaranteed
annuity (MYGA) providers, 11 structured annuity providers, and 47 variable
annuity providers participated in the 89th edition of Wink’s Sales & Market
Report for the third quarter 2019.
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