While the sales totals and percentages aren’t identical, it’s pretty safe to assume fixed indexed annuities had a record quarter when the two main sales reports both say the same thing.
Second quarter 2019 fixed indexed annuity sales had a record quarter, beating their previous record in Q4 2018 by nearly 3%, according to Sheryl Moore, author of Wink’s Sales & Market Report.
LIMRA’s Secure Retirement Institute Second Quarter U.S. Annuity Sales Survey confirmed the Wink report’s findings of a record quarter for FIAs.
Wink found indexed annuity sales increased by 11% over the prior quarter and by nearly 14% over 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 & Poor’s 500.
Overall deferred annuity sales for the second quarter of 2019 increased 6% compared to the prior quarter, based on preliminary sales according to the latest report, released Aug. 20.
Variable annuity sales increased nearly 17% over the prior quarter. Given that this is the second quarter that Wink has collected data on sales of variable annuities, additional comparisons will be available in future quarters.
“Variable annuity sales and structured annuity sales’ increased nearly 20% each; it is a great time to be offering annuities with growth based on an outside benchmark,” Moore said.
Variable annuities have no floor, and potential for gains/losses that is determined by the performance of the subaccounts that may be invested in an external index, stocks, bonds, commodities, or other investments.
Based on preliminary sales by Wink’s Sales & Market Report, all aggregated variable annuity sales for the second quarter increased nearly 17% as compared to the prior quarter. Aggregated non-variable annuity sales for the second quarter were down just over 1% from the prior quarter, and up over 16% as compared to the same time a year prior.
Additional highlights for Q2 2019
- Traditional fixed annuity sales declined by nearly 10% over the prior quarter and rose more than 21% over the same period last year. Traditional fixed annuities have a fixed rate that is guaranteed for one year only.
- Multi-year guaranteed annuity (MYGA) sales increased by 15% over the prior quarter and were up nearly 20% over the same period last year. MYGAs have a fixed rate that is guaranteed for more than one year.
- Structured annuity sales declined by 15% over the prior quarter and were up nearly 20% over the same period last year. Structured annuities have a limited negative floor and limited excess interest that is determined by the performance of an external index or subaccount.
Preliminary results are based on 94% of participation in Wink’s quarterly sales survey, representing 97% of the total sales.
Wink currently reports on indexed annuity, fixed annuity, multi-year guaranteed annuity, structured annuity, variable annuity, and multiple life insurance lines’ product sales. The firm looks forward to reporting on all types of income annuity product sales in the future.
For more information, go to www.WinkIntel.com