Suggesting that TV advertising and consumer name-recognition aren’t everything, Jackson National Life was by far the biggest recipient of positive net cash flow from annuity sales processed by the Depositary Trust & Clearing Corporation (DTCC) in 2013.
Overall, annuity sales through broker-dealers fell in the last quarter of 2013. Net cash flow into annuity products processed by DTCC’s Insurance & Retirement Services (I&RS) reached a negative $294 million in December.
DTCC’s summary Annuity Market Activity Report 2013 shows a highly concentrated industry. It includes information on:
- The disparity of flows among distributors
- The concentration of inflows within the top 10 distributors
- The top 10 states for annuity inflows
- The top 10 insurance/holding companies for inflows and net flows
- The top 10 annuity products for inflows and net flows
- Cash flows by account type (qualified and non-qualified)
December 2013 was the first month of negative net flow into annuities since Analytic Reporting of Annuities, an online service of DTCC’s National Securities Clearing Corporation (NSCC), began collecting broker-dealer annuity transaction data in 2011.
Annuity inflows processed by DTCC in 4Q13 decreased from $8.9 billion in October to $7.7 billion in December. Compared to 4Q12, inflows in 4Q13 increased by 17.6%, from $20.1 billion to $24.4 billion; while out flows stayed relatively flat, according to the report.
For all of 2013, inflows into annuity products processed by NSCC totaled almost $94 billion, increasing by nearly 11%, or $9.2 billion over 2012. Outflows totaled almost $85 billion, increasing by over 15%, or $11.4 billion over 2012. The resulting net cash flows totaled $9 billion, declining by over 19% compared to 2012.
In 2013, over $178 billion in annuity transactions involving 117 insurance companies (42 parent/holding companies), 138 distributors, and 3,467 products were processed by I&RS.
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