Annuities

  • Individual Annuity Providers Still Challenged By Low Interest Rates
    Individual Annuity Providers Still Challenged By Low Interest Rates

    Limiting the levers insurers can pull without worsening their company risk profiles

    Limiting the levers insurers can pull without worsening their company risk profiles Report on the outlook for the U.S. individual annuity industry provided by AM Best. OLDWICK, N.J.–(BUSINESS WIRE)–Despite COVID-19’s operational and sales impacts on the U.S. individual annuity industry, the bigger issue for writers remains the low interest rate environment, according to a new…
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  • Hedge Funds Remain An Option For Some Insurers
    Hedge Funds Remain An Option For Some Insurers

    Attractive for risk diversification and low correlation to other asset classes

    In 2020, the life/annuity and property/casualty insurance segments increased their exposures to hedge funds, leading to an overall 6% increase in insurance industry investments, according to the latest AM Best report.
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  • U.S. Single-Premium Pension Buy-Out Sales Drop, While Buy-In Sales Break All-Time Quarterly Record
    U.S. Single-Premium Pension Buy-Out Sales Drop, While Buy-In Sales Break All-Time Quarterly Record

    U.S. single premium buy-out sales totaled $1 billion in the first quarter, down 77% from first quarter 2020

    Following strong fourth quarter 2020 sales results, U.S. single premium buy-out sales totaled $1 billion in the first quarter, down 77% from first quarter 2020, according to the Secure Retirement Institute® (SRI®) U.S. Group Annuity Risk Transfer Sales Survey.
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  • Investors Seeking Protection Turn To Annuities In The First Quarter
    Investors Seeking Protection Turn To Annuities In The First Quarter

    RILAs, FRDs drive market growth

    Registered index-linked annuities (RILA) and fixed-rate deferred (FRD) annuities — products providing principal protection and investment growth — drove total annuity sales in the first quarter.
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  • Owning An Annuity Increases Confidence In Retirement Security
    Owning An Annuity Increases Confidence In Retirement Security

    An annuity can create a lifetime income stream, mitigating the potential longevity and market risks consumers may face in retirement

    Year after year, Secure Retirement Institute® (SRI®) research has shown that pre-retirees’ and retirees’ top concern is running out of money in retirement. The latest SRI data suggests that retirees who own an annuity are more confident than non-owners that their savings and investments will not run out if they live to age 90 (69%…
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  • Secure Retirement Institute Forecasts Rebound For Most Annuity Products By 2021
    Secure Retirement Institute Forecasts Rebound For Most Annuity Products By 2021

    Improving economic conditions on the horizon

    The Secure Retirement Institute® (SRI®) is forecasting all individual annuity product lines except traditional variable annuities and fixed-rate deferred annuities to rebound in 2021.
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  • Disruption To Life-Annuity Consumers Provides Large Opportunity For U.S. Life Insurers
    Disruption To Life-Annuity Consumers Provides Large Opportunity For U.S. Life Insurers

    Considering impacts, risks and opportunities

    The pandemic disrupted the world in 2020 and into 2021, with broad impacts on the U.S. life-annuity consumer market. Consumers became aware of mortality, morbidity, and economic risks in a novel way, providing opportunities for life-annuity insurers.
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  • New Annuities Glossary Brings Clarity & Simplicity To Critical Asset Class
    New Annuities Glossary Brings Clarity & Simplicity To Critical Asset Class

    Cutting through the technical jargon

    The Alliance for Lifetime Income, a non-profit consumer education organization devoted to helping Americans address the risk of outliving their retirement income, today released the Second Edition of its Annuities Language Glossary.
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  • Ruling Against Regulation 187 Seen As Relief For Life Insurers
    Ruling Against Regulation 187 Seen As Relief For Life Insurers

    Ruling also could lead to more life insurance sales

    AM Best believes life insurance companies’ regulatory burdens and costs could be eased by a recent court ruling overturning regulations geared toward increased consumer awareness in New York life insurance and annuity sales.
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  • Strong Economic Factors Drive First Quarter Annuity Sales Growth
    Strong Economic Factors Drive First Quarter Annuity Sales Growth

    Rising rates, market gains spur sales

    Rising interest rates and continued market gains spur growth in the U.S. annuity market. In the first quarter 2021, total annuity sales were $60.9 billion, a 9% increase from first quarter 2020, according to preliminary results from the Secure Retirement Institute® (SRI®) U.S. Individual Annuity Sales Survey.
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