The Depository Trust & Clearing Corporation (DTCC) Insurance & Retirement Services (I&RS) has released a report on activity and trends in the annuity products market for January. The data is available through DTCC’s online Analytic Reporting for Annuities information service.
Annuity inflows processed by I&RS in January increased by 7.4%, to $7.1 billion, from $6.6 billion in December. Inflows were up almost 15% compared to January 2012. Other data showed that:
- Out flows, at $6.8 billion, changed insignificantly from December.
- Net flows increased by almost $466 million in January, from negative $140 million in December, to more than $325 million.
- IRA accounts attracted 47% of all inflows in January, while non-qualified accounts attracted 41% of inflows.
- Factoring out flows into the equation, non-qualified accounts experienced negative net cash flows of more than $546 million in January compared to IRA accounts, which had positive net cash flows of more than $884 million for the month.
- Five large states accounted for over one third of all annuity flows in January: California ($565 million), Florida ($434 million), New York ($408 million), Texas ($386 million), and Pennsylvania ($305 million).
- Five large metropolitan areas accounted for over 18% of all annuity flows in January: New York, including N. New Jersey and Long Island ($434 million), Los Angeles, including Long Beach and Santa Ana ($213 million), Chicago, including Naperville and Joliet ($166 million), Philadelphia, including Camden, NJ and Wilmington, DE ($154 million), and Detroit, including Warren and Livonia ($153 million).
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