Wink, Inc. Releases 3rd Quarter, 2019 Deferred Annuity Sales Results
November 26, 2019 by Press Release
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NEWS RELEASE
Securities Registered Annuities Shine While Fixed Annuity Products’ Sales Struggle
Wink, Inc. Releases 3rd Quarter, 2019 Deferred Annuity Sales Results
Des Moines, Iowa. November 26, 2019– Wink’s Sales & Market Report is the insurance industry’s #1 resource for annuity sales data since 1997. Sixty-two indexed annuity providers, 50 fixed annuity providers, 68 multi-year guaranteed annuity (MYGA) providers, 11 structured annuity providers, and 47 variable annuity providers participated in the 89th edition of Wink’s Sales & Market Report for 3rd Quarter, 2019.
Total third quarter sales for all deferred annuity were $55.2 billion; a decline of 5.2% when compared to the previous quarter.
Noteworthy highlights for all deferred annuity sales in the third quarter include Jackson National Life ranking as the #1 carrier overall for deferred annuity sales, with a market share of 10.3%. AIG followed in second place, while Allianz Life, Lincoln National Life, and Nationwide rounded-out the top five carriers in the market, respectively. Jackson National’s Perspective II Flexible Premium Variable & Fixed Deferred Annuity, a variable annuity, was the #1 selling deferred annuity, for all channels combined in overall sales for the third consecutive quarter.
Total third quarter non-variable deferred annuity sales were $29.2 billion; down 11.8% when compared to the previous quarter and 1.9% when compared to the same period last year. Non-variable deferred annuities include the indexed annuity, traditional fixed annuity, and MYGA product lines.
Noteworthy highlights for non-variable deferred annuity sales in the third quarter include AIG ranking as the #1 carrier overall for non-variable deferred annuity sales, with a market share of 9.7%. Allianz Life moved into second place, while Jackson National Life, Athene USA, and Global Atlantic Financial Group rounded-out the top five carriers in the market, respectively. Allianz Life’s Allianz 222 Annuity, an indexed annuity, was the #1 selling non-variable deferred annuity, for all channels combined, in overall sales for the fourteenth consecutive quarter.
Total third quarter variable deferred annuity sales were $25.9 billion; an increase of 3.4% when compared to the previous quarter. Variable deferred annuities include the structured annuity and variable annuity product lines. “Some may be surprised to see that variable type products are increasing in sales where fixed product types are not; this is due to structured annuities- the rising star of deferred annuity offerings,” said Sheryl J. Moore, President and CEO of both Moore Market Intelligence and Wink, Inc.
Noteworthy highlights for variable deferred annuity sales in the third quarter include Jackson National Life ranking as the #1 carrier overall for variable deferred annuity sales, with a market share of 14.4%. AXS US took second place as Lincoln National Life, Prudential and Brighthouse Financial rounded-out the top five carriers in the market, respectively. Jackson National’s Perspective II Flexible Premium Variable & Fixed Deferred Annuity, a variable annuity, was the #1 selling variable deferred annuity, for all channels combined, in overall sales for the third consecutive quarter.
Indexed annuity sales for the third quarter were $18.6 billion; down 5.1% when compared to the previous quarter, and up 5.5% when compared with 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®.
“This was the second strongest quarter ever for indexed annuity sales, despite continued low interest rates and pricing challenges as a result of the market,” exclaimed Moore. “That said, I will guarantee that 2019 is going to set an unbelievable record for indexed annuity sales!” she continued.
Noteworthy highlights for indexed annuities in the third quarter include Allianz Life retaining their #1 ranking in indexed annuities, with a market share of 12.5%. Athene USA held the second-ranked position while AIG, Nationwide, and Jackson National Life rounded-out the top five carriers in the market, respectively. Allianz Life’s Allianz 222 Annuity was the #1 selling indexed annuity, for all channels combined, for the twenty-first consecutive quarter.
Traditional fixed annuity sales in the third quarter were $785.1 million; down 20.1% when compared to the previous quarter, and down 13.6% when compared with the same period last year. Traditional fixed annuities have a fixed rate that is guaranteed for one year only.
Noteworthy highlights for traditional fixed annuities in the third quarter include Modern Woodman of America ranking as the #1 carrier in fixed annuities, with a market share of 12.3%. Jackson National Life ranked second while, Global Atlantic Financial Group, Great American Insurance Group, and OneAmerica rounded-out the top five carriers in the market, respectively. Forethought Life ForeCare Fixed Annuity was the #1 selling fixed annuity for the second consecutive quarter, for all channels combined.
Multi-year guaranteed annuity (MYGA) sales in the third quarter were $9.7 billion; down 21.7% when compared to the previous quarter, and down 13.0% when compared to the same period last year. MYGAs have a fixed rate that is guaranteed for more than one year.
Noteworthy highlights for MYGAs in the third quarter include AIG ranking as the #1 carrier, with a market share of 13.1%. New York Life moved into the second-ranked position, as Global Atlantic Financial Group, Jackson National Life, and Delaware Life rounded-out the top five carriers in the market, respectively. Jackson National Life’s JACKSON RateProtector 3-Year was the #1 selling multi-year guaranteed annuity for the quarter, for all channels combined.
Structured annuity sales in the third quarter were $4.7 billion; up 15.8% as compared to the previous quarter, and up 60.7% as compared to the previous year. Structured annuities have a limited negative floor and limited excess interest that is determined by the performance of an external index or subaccounts. Moore commented, “Structured annuity sales continue to set records. It is no wonder that we continued to see companies enter this line of business each quarter when you consider that this product mirrors indexed annuities when evaluated at the same point in the product life cycle.”
Noteworthy highlights for structured annuities in the third quarter include AXA US ranking as the #1 carrier in structured annuities, with a market share of 27.2%. Brighthouse Life’s Shield Level Select 6-Year was the #1 selling structured annuity for the seventh consecutive quarter, for all channels combined.
Variable annuity sales in the third quarter were $21.2 billion; an increase of 1.0% as compared to the previous quarter. Variable annuities have no floor, and potential for gains/losses that are determined by the performance of the subaccounts that may be invested in an external index, stocks, bonds, commodities, or other investments. “It isn’t surprising to see an increase in variable annuity sales, given the recent market behavior,” commented Moore.
Noteworthy highlights for variable annuities in the third quarter include Jackson National Life ranking as the #1 carrier in variable annuities, with a market share of 17.7%. Prudential ranked second, while Lincoln National Life, AXA US, and Nationwide rounded-out the top five carriers in the market, respectively. Jackson National’s Perspective II Flexible Premium Variable & Fixed Deferred Annuity was the #1 selling variable annuity for the third consecutive quarter, for all channels combined.
Wink currently reports on indexed annuity, fixed annuity, multi-year guaranteed annuity, structured annuity, variable annuity, and multiple life insurance lines’ product sales. Sales reporting on additional product lines will follow at some point in the future.
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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 expanded to cover all deferred annuity products in 2015, all deferred variable annuity products in 2019 and all non-variable cash value life insurance products in 2017.
The staff of Wink, Inc. has the combined experience of more than 175 years working with insurance products, more than a decade of which is specific to competitive intelligence. 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.
November 26, 2019
Des Moines, IA
(855) ASK-WINK
