Propelled by an improved interest rate environment, second-quarter fixed annuity sales posted sequential gains for the first time in two years.
According to a recent study conducted by Beacon Research, rising interest rates coupled with the steepest yield curve in close to two years afforded carriers the opportunity to increase the rates they offered on fixed and indexed annuities.
The study, “Fixed Annuity Premium Study” found total fixed annuity results were $17.1 billion in the second quarter, up 14.6 percent sequentially and 0.2 percent from last year. Sales of indexed annuities came in at $9.1 billion, up 17.1 percent from the previous quarter. Income annuity sales results, a category that includes the annuity du jour — deferred income annuities — grew 16.9 percent sequentially to $2.6 billion. Sales of market-value-adjusted (MVA) annuities were up 34.9 percent from the previous quarter to $1.3 billion.
New York Life was the top-selling fixed annuity company in Q2 with $1.47 billion while Security Benefit Life, a Guggenheim Partners Company, came in second with $1.43 billion. Allianz Life rounded out the top three with $1.26 billion.