Fixed annuity sales by banks and other depository institutions increased by 3% from the same period one year ago, according to a new report.
The American Bankers Association, Washington, D.C., published this finding in a summary of results from a Fixed Annuity Premium Study conducted by Beacon Research, Evanston, Ill. The report tracks fixed and variable annuity features, rates and sales.
One-third of the bank channel carriers tracked by Beacon’s study reported increased sales compared to the same period last year, with 52% reporting improved quarter-to-quarter results. Western National maintained its position as the leading bank channel company among study participants.
Genworth jumped four notches from the prior quarter to come in second while Symetra remained in third place. Great American and Lincoln Financial Group traded places to come in fourth and fifth, respectively, ABA says.
The data indicate that industry-wide quarter-to-quarter sales fell 19%.
“Fixed rate non-MVAs account for at least two-thirds of banks’ fixed annuity sales, and these products drove overall results as usual,” says Jeremy Alexander, president and CEO of Beacon Research. “Fixed annuity rates were lower than in the same quarter a year ago, but they had a slightly larger advantage over treasuries and CDs.”