Total first quarter 2017 non-variable deferred annuity sales were $23.0 billion; up over 9.7% from the prior quarter, but down almost 15% from the same period in 2016, according to the latest edition of Wink’s Sales & Market Report.
The report covered 55 indexed annuity issuers, including 51 fixed annuity providers, and 56 multi-year-guaranteed annuity companies, according to a Wink release.
Total first quarter indexed annuity sales were just over $12.9 billion. Sales were down almost 3% from the previous quarter, and down over 14.3% from the same period last year. Total first quarter traditional fixed annuity sales were just over $1.1 billion. Sales were up more than 5.5% from the previous quarter, and down over 6.4% from the same period last year.
New York Life was the overall top seller of non-variable deferred annuities, with a market share of 9.6%. Allianz Life was second, followed by AIG, Great American, and Global Atlantic. Allianz Life’s Allianz 222 Annuity indexed annuity was the top-selling non-variable deferred annuity in the first quarter.
Allianz Life retained its top ranking in indexed annuity sales with a market share of 13.1%. American Equity was second, followed by Athene USA, Nationwide, and Great American Insurance Group. Allianz Life’s Allianz 222 Annuity was the top-selling indexed annuity, for all channels combined, for the eleventh consecutive quarter.
MYGA sales for the first quarter were over $8.9 billion; up more than 35.6% when compared to the previous quarter, and down nearly 16.7% when compared to the same period last year.
Jackson National Life was the top seller of traditional one-year guaranteed rate fixed annuities, with a market share of 13.2%, Wink said. Modern Woodmen of America attained the second-ranked position. Great American, Reliance Standard, and Global Atlantic Financial Group rounded out the top five carriers in the market, respectively. Forethought Life’s ForeCare fixed annuity was the top-selling one-year fixed annuity for the quarter, for all channels combined.
New York Life was the top carrier in MYGA sales, with a market share of 24.6%. AIG was in second place, followed by Global Atlantic Financial Group, Symetra Financial, and Security Benefit Life. Forethought’s SecureFore 3 Fixed Annuity was the top-selling MYGA for the quarter, for all channels combined.
“While an increase in sales of more than 35% may seem significant to the MYGA market, one has to consider the interest rate environment,” Moore said. “Most companies experienced annuity rate increases during the first quarter, as a result of the Federal Reserve’s two increases in the benchmark rate during the same period. This directly benefitted MYGA sales.”
Moore said that Wink will begin reporting on immediate annuity and variable annuity product sales in the future. Wink’s Sales & Market Report expanded its sales reporting to include traditional universal life and whole life product sales, in addition to indexed universal life, in the first quarter of 2017. Term life product sales will follow in upcoming quarters.
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