Non-variable annuity sales for the third quarter of 2018 were up 4.72% over the prior quarter and 46.26% higher than in the same period last year, based on preliminary sales data gathered by Wink’s Sales & Market Report. Non-variable deferred annuities include the indexed annuity, traditional fixed annuity, and MYGA product lines.
Indexed annuity sales increased by more than 2% over the prior quarter and by more than 38% over 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.
Traditional fixed annuity sales increased by 16.7% over the prior quarter and rose by 28.7% over the same period last year. Traditional fixed annuities have a fixed rate that is guaranteed for one year only.
Sales of multi-year guaranteed annuities (MYGA) increased by 8.1% over the prior quarter and were up 63.4% over the same period last year. MYGAs have a fixed rate that is guaranteed for more than one year.
“Recent increases in annuity rates, coupled with incentives being offered by product manufacturers have really translated to sales momentum!” said Wink CEO Sheryl Moore.
Structured annuity sales are estimated to be up nearly 40% from the prior quarter. Structured annuities have a limited negative floor and limited excess interest that is determined by the performance of an external index or subaccounts. “These aren’t indexed annuities, although some companies are marketing them in that manner,” Moore said.
These preliminary results are based on 94% of participation in Wink’s quarterly sales survey representing 97% of the total sales.
Wink currently reports on indexed annuity, fixed annuity, multi-year guaranteed annuity, structured annuity, and multiple life insurance lines’ product sales. It plans to report on variable annuity and all types of income annuity product sales in the future, a release said.
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