Indexed Annuity Sales Set Records Again

Wink, Inc. Releases Preliminary 3rd Quarter, 2018 Deferred Non-Variable and Structured Annuity Sales.

Des Moines, Iowa; November 14, 2018  — Non-variable annuity sales for the third quarter of 2018 increased 4.72% as compared to the prior quarter, and improved 46.26% as compared to the same period last year, based on preliminary sales by Wink’s Sales & Market Report. The sales 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.

Highlights for the third quarter 2018 as compared to second quarter 2018 are:

Indexed annuity sales increased by more than 2.00% over the prior quarter and by more than 38.00% 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 16.70% over the prior quarter and rose by 28.70% 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 8.10% over the prior quarter and were up 63.40% over the same period last year. MYGAs have a fixed rate that is guaranteed for more than one year.

Fed Up With CDs

“Americans have had it with record-low rates on Certificates of Deposit (CD) accounts,” commented 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!” she commented.

Structured annuity sales are estimated to be up nearly 40.00% 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,” Sheryl J. Moore asserted.

Americans have had it with record-low rates on Certificates of Deposit (CD) accounts...

Preliminary results are only based on 94.00% of participation in Wink’s quarterly sales survey representing 97.00% 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 variable annuity and all types of income annuity product sales in the future.
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Wink, Inc. is the company behind the most comprehensive life insurance and annuity due-diligence tools, AnnuitySpecs and LifeSpecs at www.LookToWink.com. Wink, Inc. is the distributor of the quarterly Wink’s Sales & Market Report. Serving as the insurance industry’s #1 resource of indexed insurance product sales since 1997, this report provides sales by product, company, crediting method, index, distribution, surrender charge period, and more. Wink’s Sales & Market Report expanded to cover all fixed deferred annuity products in 2015 and all non-variable cash value life insurance products in 2017.
The staff of Wink, Inc. has the combined experience of more than a century working with insurance products. Based in Des Moines, Iowa, the firm offers competitive intelligence and market research in the life insurance and annuity industries; serving financial services professionals, distributors, manufacturers, regulators, and consultants on both a domestic and global basis.
Sheryl J. Moore is president and CEO is the guiding force behind Wink, Inc. Ms. Moore previously worked as a market research analyst for top carriers in the life insurance and annuity industries. Her views on the direction of the market are frequently heard in seminars and quoted by industry trade journals.