Industry Spotlight > Broker Dealers

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

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The Depository Trust & Clearing Corporation processed almost 24 million annuity transactions totaling nearly $79 billion in the first half of 2012, the company reported today.

Insurance & Retirement Services, a unit of the Depository Trust & Clearing Corporation, New York, released these results in its Analytic Reporting for Annuities online information service, which leverages data from the transactions that DTCC processes for the industry. DTCC processes transactions in annuity products though National Securities Clearing Corporation (NSCC), a DTCC subsidiary, and Analytic Reporting for Annuities is a service offering of NSCC.

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%