FIA Sales Ready to Push the Reset Button?
November 15, 2016 by Cyril Tuohy
When the Department of Labor’s fiduciary rule was released in April, analysts expected a rush to sell more fixed indexed annuities (FIAs) in anticipation of distributors having a tougher time selling them next year.
But instead of rising in the third quarter from the second quarter, sequential sales of FIAs softened well ahead of schedule. In addition, it seems as though the urgency among agents and distributors to sell FIAs as not materialized, according to a top life and annuity company.
Sales of FIAs by independent agents for American Equity dropped 26 percent in the third quarter from the second quarter. However, a softening was expected in the wake of very strong sales in the first half, said American Equity president and CEO John Matovina.
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“More than $53 billion worth of FIAs were sold last year, setting a record. Third-quarter sales data are expected to be released shortly by Wink’s Sales & Market Report.”
