Non-variable annuity sales for the second quarter of 2018 were up 22% compared to the prior quarter, and increased 20% as compared to the same period last year, according to preliminary figures released Aug. 14 from the latest version of Wink’s Sales & Market Report.
The sales report from Des Moines-based Wink, Inc., is in its 84th edition with the upcoming release for 2nd Quarter, 2018. Non-variable deferred annuities include the indexed annuity, traditional fixed annuity, and MYGA product lines.
Highlights for the second quarter 2018 as compared to first quarter 2018 are:
- Indexed annuity sales increased by 22% over the prior quarter and 18% 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 and Poor’s 500®.
- Traditional fixed annuity sales increased by 20% over the prior quarter and declined 12% 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 23% over the prior quarter and were up 27% over the same period last year. MYGAs have a fixed rate that is guaranteed for more than one year.
“I would say that the annuity industry is ready to get back to business,” said Sheryl J. Moore, author of Wink’s Sales & Market Report. “The recent increases in rates, coupled with the regulatory reprieve, will result in a confluence of sales momentum to close-out 2018 with record sales levels.”
Structured annuity sales
Structured annuity sales are estimated to be down 16% from the prior quarter. Structured annuities have a limited negative floor and limited excess interest that is determined by the performance of an external index or subaccounts. “The important thing to remember is that these aren’t indexed annuities, although some companies are marketing them in that manner,” Moore said.
Preliminary results are only based on 94% of participation in Wink’s quarterly sales survey representing 97% of the total sales.
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 immediate annuity and variable annuity product sales in the future.
For more information, go to www.LookToWink.com.
It's no wonder. My personal annuities did fantastic in 2017. Way better than I ever expected an annuity to do. That has to ramp up sales of people who sell them for a living.