DTCC: $79 Billion Annuity Transactions Processed in First Half of 2012

DTCC reports that in the first half of 2012, I&RS processed almost 24 million annuity transactions totaling nearly $79 billion for:

• 108 insurance company participants (representing 43 parent/holding companies)
• 116 broker/dealers
• 3,202 annuity products

The transactions processed by I&RS provide a view of a broad range of broker/dealers with a particular concentration in nonproprietary distribution.

In the month of June:

• Annuity inflows processed by DTCC in June declined by 6.6%, to just under $7 billion from $7.5 billion in May.
• Out flows processed in June decreased by almost 10% to $5.8 billion from over $6.4 billion in May.
• Net flows increased by almost 12% in June, to nearly $1.2 billion from $1 billion in May.

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 are the percentages of inflows processed by DTCC I&RS in June:

• Bank broker/dealers – 13%
• Independent broker/dealers – 28%
• Insurance broker/dealers – 9%
• Other broker/dealers – 19%
• Regional broker/dealers – 15%
• Wirehouses – 17%