Annuity sales, a major Des Moines industry, see Q2 bump
August 27, 2014 by Matthew Patane
A major contributor to the Des Moines area’s insurance hub saw sales rise 36.5 percent in April, May and June compared with a year ago.
Sales of indexed annuities from 39 companies grew to $12.6 billion in the second quarter, according to a new Wink’s Sales & Market Report.
Indexed annuities are popular among retirees because they pay out a steady stream of cash over time after an initial investment.
More than $4 billion of the second quarter’s sales came from 11 companies that have a presence in the Des Moines metro area.
Two West Des Moines firms, for instance, maintained their position in the top five for annuity sales: American Equity ranked third while Athene USA ranked fifth.
Other insurance companies with a Des Moines-area presence on the list include, Fidelity & Guaranty, Nationwide and Principal Financial Group.
The metro’s insurance companies employ upward of 24,000 people.
Allianz Life, based in Minneapolis, had the highest sales for the quarter. The company sold more than $3.8 billion worth of annuities during the three-month period, making up 30.4 percent of the market share for the sector.
