Annuity Sales Start to Stabilize: Wink
August 29, 2017 by Allison Bell
Issuers of U.S. indexed annuities, multi-year guaranteed annuities and traditional fixed annuities may be starting to adjust to the new hard times.
Sales of those types of annuities continued to fall in the second quarter, but more like a leaf, and less like a rock, than in some earlier quarters.
Sales of non-variable annuities of all kinds fell to $23.5 billion in the second quarter, down 9.3% from the total for the second quarter of 2016, according to a new Sales & Market report from Wink.
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In the first quarter, sales of non-variable annuities were down 15%, year-over-year, according to data from Wink, which is based on Des Moines, Iowa.
Wink bases its reports on issuer surveys.
Low interest rates, competition from other financial products, and uncertainty about the U.S. Department of Labor’s fiduciary rule have slammed annuity sales in the past year.
In the second quarter, here’s what happened to the three types of annuities included in the new Wink report:
Indexed annuities: Sales fell 5.6%, year-over-over, to $14.7 billion. In the first quarter, sales fell 14%m year-over-year.
Traditional fixed annuities: Sales fell 39%, year-over-year, to $1 billion. In the first quarter, sales fell 7%.
Multi-year-guaranteed annuities: Sales fell 11%, year-over-year, to $7.9 billion. In the first quarter, sales fell 17%.
