Total first quarter sales for all deferred annuities were $59.7 billion; a decrease of 1.9% compared to the previous quarter and an increase of 2.2% compared to the same period last year, according to the 99th edition of Wink’s Sales & Market Report for 1st Quarter, 2022.
All deferred annuities include the variable annuity, structured annuity, indexed annuity, traditional fixed annuity, and MYGA product lines.
The report found Jackson National Life ranked as the No. 1 carrier overall for deferred annuity sales, with a market share of 7.8%. New York Life moved into second place, while AIG, Equitable Financial, and Allianz Life 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 top-selling deferred annuity, for all channels combined in overall sales for the thirteenth consecutive quarter.
Total first quarter non-variable deferred annuity sales were $31.7 billion; an increase of 10.7% compared to the previous quarter and an increase of 12.0% 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 first quarter include AIG ranking as the top carrier overall for non-variable deferred annuity sales, with a market share of 9.5%. New York Life moved into second place, while Massachusetts Mutual Life Companies, Athene USA, and Global Atlantic Financial Group completed the top five carriers in the market.
Western-Southern Life’s SmartSelect 3-Year, a MYGA, was the best-selling non-variable deferred annuity, for all channels combined.
Total first quarter variable deferred annuity sales were $27.9 billion; down 13.3% when compared to the previous quarter and down more than 6.9% when compared to the same period last year. Variable deferred annuities include the structured annuity and variable annuity product lines.
Highlights for variable deferred annuity sales in the first quarter include Jackson National Life ranking as the No. 1 carrier overall, with a market share of 15.3%. Equitable Financial held onto the second-place position, as Lincoln National Life, Brighthouse Financial, and Nationwide concluded the top five carriers in the market, respectively. Jackson National’s Perspective II Flexible Premium Variable & Fixed Deferred Annuity, a variable annuity, was the top-selling variable deferred annuity, for all channels combined in overall sales for the thirteenth consecutive quarter.
Indexed annuity sales for the first quarter were $16.6 billion; down 1.6% when compared to the previous quarter, and up 14.5% 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.
Athene USA ranked as the No. 1 seller of indexed annuities, with a market share of 8.7%. Allianz Life maintained the second-ranked position while AIG, Sammons Financial Companies, and Fidelity & Guaranty Life rounded out the top five.
Allianz Life’s Allianz Benefit Control Annuity was the best-selling indexed annuity, for all channels combined for the sixth consecutive quarter.
“Indexed annuity sales are blowing past where they were this time last year,” said Sheryl Moore, CEO of both Wink, Inc. and Moore Market Intelligence. “If this quarter is an indicator of things to come, this could be a record year for indexed annuity sales.”
Traditional fixed annuity sales in the first quarter were $463.5 million; sales were down 4.8% when compared to the previous quarter, and up more than 2.8 % when compared with the same period last year. Traditional fixed annuities have a fixed rate that is guaranteed for one year only.
Highlights for traditional fixed annuities in the first quarter include Modern Woodmen of America ranking as the top carrier in fixed annuities, with a market share of 21.15%. Global Atlantic Financial Group ranked second, while Jackson National Life, American National, and EquiTrust rounded out the top five.
Forethought Life’s ForeCare Fixed Annuity was the best-selling fixed annuity, for all channels combined for the seventh consecutive quarter.
Multi-year guaranteed annuity (MYGA) sales in the first quarter were $14.5 billion; sales were up 30.1% when compared to the previous quarter, and up more than 9.86% when compared to the same period last year. MYGAs have a fixed rate that is guaranteed for more than one year.
New York Life was the top-ranked carrier with a market share of 19.0%. Massachusetts Mutual Life Companies moved to the second-ranked position, while AIG, Western-Southern Life Assurance Company, and Global Atlantic Financial Group rounded out the top five. Western-Southern Life’s SmartSelect 3-Year was the top-selling multi-year guaranteed annuity for all channels combined for the quarter.
“Multi-Year Guaranteed Annuity sales exploded again this quarter,” Moore said. “If interest rates continue their upward movement, we can count on more of this in future quarters.”
Variable annuity sales in the first quarter were $18.5 billion, down more than 16.4% as compared to the previous quarter and down 11.9% as compared to the same period last year. Variable annuities have no floor, and the potential for gains/losses are determined by the performance of the subaccounts that may be invested in an external index, stocks, bonds, commodities, or other investments.
Noteworthy highlights for variable annuities in the first quarter include Jackson National Life ranking as the top carrier with a market share of 21.7%. Equitable Financial ranked second, while Lincoln National Life, Nationwide, and New York Life finished out the top five.
Jackson National’s Perspective II Flexible Premium Variable & Fixed Deferred Annuity was the best-selling variable annuity for the thirteenth consecutive quarter, for all channels combined.
Wink’s Sales & Market Report is the insurance industry’s No. 1 resource for annuity sales data since 1997. Sixty-two indexed annuity providers, 44 fixed annuity providers, 68 multi-year guaranteed annuity (MYGA) providers, 16 structured annuity providers, and 43 variable annuity providers participated in the latest survey.
For more information, go to www.WinkIntel.com.
- SEE ALSO: Annuity Sales Spiked 16% in 2021
interesting headline giving the impression that MYGA sales were up the most.
From reading the data, it appears to show Index Annuity sales were up 14.5% in 1st Qtr 2022 compared to 1st Qtr 2021, whereas MYGA was 9.8%.
Regardless, looks like 1st quarter 2022 had many buyers looking for safety of a guaranteed rate or guarantee of principal & away from variable.
interesting to see MYGA average commission is now down to 1.79%. Guessing that means a large majority of MYGA sales are coming via bank channels/direct/RIA/brokerage house partnerships
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My guess is that most agents are writing the shorter surrenders. 3 year MYGAs pay around 1.5% and have rates that are very competitive with longer durations.
Yep. The majority of MYGA's I sell are shorter duration. I may write the occasional 5 year, but not very often (probably haven't written a 5 year in the last 3-4 years).