Non-variable annuity sales for the third quarter of 2018 increased 4.72% as compared to the prior quarter, and improved 0.46% as compared to the same period last year, based on preliminary sales by Wink’s Sales & Market Report released on Nov. 14.
“Americans have had it with record-low rates on Certificates of Deposit (CD) accounts,” said Sheryl J. Moore, author of Wink’s Sales & Market Report. “Recent increases in annuity rates, coupled with incentives being offered by product manufacturers have really translated to sales momentum.”
Structured annuity sales are estimated to be up nearly 40% 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.
Highlights for the third quarter 2018 as compared to second quarter 2018 are:
- Indexed annuity sales increased by more than 2% over the prior quarter and by more than 38% 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 16.7% over the prior quarter and rose by 28.7% 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 8.1% over the prior quarter and were up 63.4% over the same period last year. MYGAs have a fixed rate that is guaranteed for more than one year.
Wink’s Sales & Market Report is in its 85th edition with the upcoming release for 3rd Quarter, 2018. Note that non-variable deferred annuities include the indexed annuity, traditional fixed annuity, and MYGA product lines.
For more information, go to www.LookToWink.com.