Deferred annuity sales were up nearly 19% in the first quarter over the same period last year, Wink, Inc. reported today.
Spiking sales have annuities on pace to crack the $400 billion sales barrier for the first time this year. If the first quarter is any indication, producers are motivated by the impending fiduciary rule going into effect starting Sept. 23, said Sheryl Moore, founder and CEO of Wink.
“I think there’s kind of a fire-sale mentality that’s going on,” she said. “The carriers know that this fiduciary rule is going to have an impact on their sales. And the insurance agents know that things are going to change coming in September.”
Officially known as the Retirement Security Rule, it will allow the Department of Labor to extend fiduciary duty to a majority of annuity sales.
The deferred annuity family includes the multi-year guaranteed annuity, traditional fixed, indexed annuity, structured annuity, and variable annuity product lines. Total first-quarter sales for all annuities, which include immediate income and deferred income annuities, were $105.7 billion, according to Wink’s Sales & Market Report.
Wink began collecting data on income annuity sales in Q1, and comparisons of these products will be available in future quarters, Moore said.
Noteworthy highlights for all annuity sales in the first quarter include Athene USA ranking as the No. 1 carrier overall for deferred annuity sales, with a market share of 9.2%. Nationwide came in second place, while Corebridge Financial, New York Life, and Equitable Financial rounded out the top five carriers in the market, respectively.
Total first quarter sales for all deferred annuities were down 3% compared to the previous quarter and up 18.6% when compared to the same period last year.
Noteworthy highlights for all deferred annuity sales in the first quarter include Athene USA ranking as the No. 1 carrier overall for deferred annuity sales, with a market share of 9.7%. Corebridge Financial moved into second place, while Equitable Financial, Nationwide, and Allianz Life rounded the top five carriers in the market, respectively.
Jackson National’s Perspective II Flexible Premium Variable & Fixed Deferred Annuity, a variable annuity, was the No. 1 selling deferred annuity, for all channels combined, in overall sales for the quarter.
Total first quarter non-variable deferred annuity sales were $73.4 billion, down 7.6% when compared to the previous quarter and up 16.7% when compared to the same period last year. Non-variable deferred annuities include the MYG annuity, traditional fixed annuity, and indexed annuity product lines.
Noteworthy highlights for non-variable deferred annuity sales in the first quarter include Athene USA ranking as the No. 1 carrier overall for non-variable deferred annuity sales, with a market share of 12.9%. Corebridge Financial took second place while Global Atlantic Financial Group, Nationwide and Massachusetts Mutual Life Companies completed the top five carriers in the market, respectively.
Forethought Life’s SecureFore 3 Fixed Annuity, a MYG annuity was the No. 1 selling non-variable deferred annuity for the quarter, for all channels combined, in overall sales for the second consecutive quarter.
Total first-quarter variable deferred annuity sales were $27 billion, up 12.2% compared to the previous quarter and up 24.1% when compared to the same period last year. Variable deferred annuities include structured annuity and variable annuity product lines.
Noteworthy highlights for variable deferred annuity sales in the first quarter include Equitable Financial ranking as the No. 1 carrier overall for variable deferred annuity sales, with a market share of 19.5%. Jackson National Life continued in the second-place position, as Allianz Life, Brighthouse Financial, and Lincoln National Life concluded as the top five carriers in the market, respectively.
Jackson National’s Perspective II Flexible Premium Variable & Fixed Deferred Annuity, a variable annuity, was the No. 1 selling variable deferred annuity, for all channels combined, in overall sales for the second consecutive quarter.