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Industry Spotlight > Broker Dealers

Report: Annuity Inflows Processed by DTCC Rose to $7.5 Billion in May

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Annuity inflows processed by The Depository Trust & Clearing Corporation in May increased by just over 1%, according to a new report.

The DTCC’s Insurance & Retirement Services (I&RS), New York, released this finding in a report on activity in the market for annuity products. Published in Analytic Reporting for Annuities, an online information service of National Securities Clearing Corp., a DTCC subsidiary, the report leverages data from the transactions that DTCC processes for the industry.

The report reveals that annuity inflows processed by the DTCC in May increased to $7.5 billion from $7.4 billion in April. Similarly, outflows processed in May increased by almost 4% to over $6.4 billion from under $6.2 billion in April.

However, the report says, net flows decreased by more than 12% in May, to $1 billion from over $1.2 billion in April.

The divergence of inflows between qualified accounts and non-qualified accounts narrowed again in May. Inflows into qualified accounts were slightly above 58% while inflows into non-qualified accounts were at 41%, the report reveals.

Although non-qualified accounts attracted 41% of inflows in May, net cash flows into nonqualified accounts were negative for the fifth month in a row, meaning that in each of the last five months more funds were withdrawn than added.

In August 2011, DTCC joined forces with the Retirement Income Industry Association (RIIA) to analyze cash flows by RIIA-defined broker/dealer distribution channels and product categories. For the six distribution

channels defined by RIIA, the following, the report states, are the percentages of inflows processed by DTTCC in May:

• Independent broker/dealers – 27%%

• Warehouse sees – 17%

• Regional broker/dealers – 16%

• Bank broker/dealers – 13%

• Insurance broker/dealers – 9%

• Others – 18%


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