Q2 2019 Sales increased 6%
Des Moines, Iowa. August 20, 2019- Deferred annuity sales for the second quarter of 2019 increased 6.00% as compared to the prior quarter, based on preliminary sales by Wink’s Sales & Market Report. The sales report is in its 88th edition with the upcoming release for 2nd Quarter, 2019.
Highlights for the second quarter 2019 as compared to second quarter 2018 are:
Indexed annuity sales increased by 11.00% over the prior quarter and by nearly 14.00% 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 declined by nearly 10.00% over the prior quarter and rose more than 21.00% 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 15.00% over the prior quarter and were up nearly 20.00% over the same period last year. MYGAs have a fixed rate that is guaranteed for more than one year.
Structured annuity sales declined by 15.00% over the prior quarter and were up nearly 20.00% over the same period last year. Structured annuities have a limited negative floor and limited excess interest that is determined by the performance of an external index or subaccount.
Variable annuity sales increased nearly 17.00% over the prior quarter. Given that this is the second quarter that Wink has collected data on sales of variable annuities, additional comparisons will be available in future quarters. Variable annuities have no floor, and potential for gains/losses that is determined by the performance of the subaccounts that may be invested in an external index, stocks, bonds, commodities, or other investments.
VA Sales Up 17%
Based on preliminary sales by Wink’s Sales & Market Report, all aggregated variable annuity sales for the second quarter increased nearly 17.00% as compared to the prior quarter. Aggregated non-variable annuity sales for the second quarter were down just over 1.00% from the prior quarter, and up over 16.00% as compared to the same time a year prior.
“Indexed annuity sales in the second quarter had a record quarter, beating their previous record in 4Q-2018 by nearly 3.00%!” observed Sheryl J. Moore, author of Wink’s Sales & Market Report. “However, variable annuity sales and structured annuity sales’ increased nearly 20.00% each; it is a great time to be offering annuities with growth based on an outside benchmark” she commented.
Preliminary results are only based on 94.00% of participation in Wink’s quarterly sales survey representing 97.00% of the total sales.
Wink currently reports on indexed annuity, fixed annuity, multi-year guaranteed annuity, structured annuity, variable annuity, and multiple life insurance lines’ product sales. The firm looks forward to reporting on all types of income annuity product sales in the future.
For more information, go to www.WinkIntel.com
Wink, Inc. is the company behind the most comprehensive life insurance and annuity due-diligence tools, AnnuitySpecs and LifeSpecs at www.WinkIntel.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 covers sales of all deferred annuity products in addition to all non-variable cash value life insurance products; additional product lines are forthcoming. The research firm is also responsible for the insight behind Wink’s Index Intelligence Report, providing sales on indexed insurance products at an individual index level.
The staff of Wink, Inc. has the combined experience of more than 175 years 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.