INDEXED ANNUITY SALES FALL SHORT OF SETTING RECORD
Wink, Inc. Releases 2nd Quarter, 2016 Non-Variable Deferred Annuity Sales Results
Pleasant Hill, IA, August 26, 2016—Wink’s Sales & Market Report, the insurance industry’s #1 resource for indexed annuity and indexed life sales data since 1997, has completed its first full year reporting on all non-variable deferred annuities which include, indexed annuity, traditional fixed annuity, and multi-year guaranteed annuity (MYGA) product lines.
Fifty-three indexed annuity providers, 48 fixed annuity providers and 55 MYGA companies participated in the 76th edition of Wink’s Sales & Market Report for 2nd Quarter, 2016. Total second quarter non-variable deferred annuity sales were $26.3 billion. Second quarter total annuity sales were down nearly 3.0% as compared to the previous quarter.
Noteworthy highlights for non-variable deferred annuities in the second quarter include Allianz Life ranking as the #1 carrier overall for non-deferred annuity sales, with a market share of 11.6%. American Equity Companies stood in second position with AIG, Midland National, and Global Atlantic Financial Group rounding out the top five carriers in the market. Allianz Life’s Allianz 222 Annuity indexed annuity was the #1 selling non-variable deferred annuity for overall sales.
Total second quarter indexed annuity sales were $15.5 billion; up more than 3% when compared to the previous quarter and up nearly 28% when compared with the same period last year. “While the sales of indexed annuities fell just shy of a quarterly record, it was the second highest quarter in the history of the product line.” stated Sheryl J. Moore, President and CEO of both Moore Market Intelligence and Wink, Inc. She explained, “Second quarter sales are typically unremarkable, this quarter was greater than every quarter but last’ year’s record fourth quarter. This really speaks to consumer’s demand for safe money products that can outpace rates at the bank!”
Noteworthy highlights for indexed annuities in the second quarter include Allianz Life as the #1 carrier in indexed annuities, with a market share of 19.6%. American Equity Companies held their second-rank position. Rounding out the top five carriers in the market were AIG, Athene USA, and Great American Insurance Group, respectively. Allianz Life’s Allianz 222 Annuity was the #1 selling indexed annuity for the eighth consecutive quarter.
Total second quarter traditional fixed annuity sales were $1.6 billion; up over 38% when compared to the previous quarter and down nearly 13% when compared to the same period last year. Noteworthy highlights for fixed annuities in the second quarter include Jackson National Life ranking as the #1 carrier in fixed annuities, with a market share of 11.9%. Athene USA took the second-rank position. Rounding out the top five carriers in the market were Reliance Standard, Great American Insurance Group, and MetLife, respectively. Forethought Life’s ForeCare Fixed Annuity was the #1 selling fixed annuity.
Multi-Year Guaranteed Annuity (MYGA) sales for the first quarter were over $9.0 billion; down more than 16% when compared to the previous quarter and up more than 131% when compared to the same period last year. Noteworthy highlights for MYGAs in the second quarter include New York Life ranking as the #1 carrier in fixed annuities, with a market share of 14.7%. AIG took the second-rank position. Rounding out the top five carriers in the market were Midland National Life, Global Atlantic Financial Group, and American Equity Companies, respectively. Forethought Life’s SecureFore 5 Fixed Annuity was the #1 selling multi-year guaranteed annuity.
“Many are surprised that sales of fixed and multi-year guaranteed annuities continue to do so well,” commented Moore. She continued, “Although we are experiencing record low interest rates on fixed annuities, rates on certificates of deposit (CDs) are still hovering at less than 1%. These annuities allow you to beat that rate by more than 2%-3, depending on the product.”
Wink looks forward to reporting on even more annuity product lines such as immediate annuities, term life and variable products. Next quarter Wink looks to expand to traditional universal life and whole life sales reporting.
For more information, go to www.LookToWink.com
The staff of Moore Market Intelligence has combined experience of nearly four decades working with indexed insurance products. The firm provides services in speaking, research, training, product development, and marketing of indexed annuities and indexed life insurance. Their knowledge in product filing research and policy forms analysis, coupled with their unmatched resources in insurance distribution, give them the expertise to provide competitive intelligence that allows carriers to stay ahead of their competition.
Sheryl J. Moore is president and CEO of this specialized third-party market research firm and the guiding force behind the industry’s most comprehensive indexed life and indexed annuity due diligence tools, AnnuitySpecs and LifeSpecs distributed by Wink, Inc. Ms. Moore previously worked as market research analyst for top carriers in the indexed life and annuity industries. Her views on the direction on the indexed market are frequently heard in seminars and quoted by industry trade journals.
Ms. Moore is the author of the quarterly Wink’s Sales & Market Report. Serving as the insurance industry’s #1 resource of indexed insurance product sales since 1997, this report provides sales by product, company, crediting method, index, distribution, surrender charge period, and more. Wink’s Sales & Market Report expanded to cover all fixed deferred annuity products in 2015.
Wink, Inc. is the company that distributes resources such as this sales report, along with the competitive intelligence tools AnnuitySpecs and LifeSpecs at www.LookToWink.com.
August 26, 2016
Pleasant Hill, IA