Fixed indexed annuities (FIAs) constitute the highest share of annuity revenue. This is according to a survey of 542 independent agents, career agents, independent broker-dealers, independent financial planners, independent financial professionals, wirehouse/full service broker-dealer reps and bank financial advisors who responded to an online survey sponsored by Athene.
Seven in 10 respondents have sold one or more FIA products in the past year. Independent agents are far more likely to be associated with FIAs than other types of financial professionals. And in addition, FIA revenue share is greater among professionals selling less than $250,000 in new annuity premiums.
Survey respondents hold a variety of positions—including independent agents, career agents, independent broker-dealers, IFA/IFPs, wirehouse or full service broker dealer rep and bank financial advisor. Those who responded to the survey, held in May 2015, revealed that not only has FIA premium revenue been on the rise in recent years, but they anticipate growing their FIA revenue in the near future.
This group also revealed that the highest proportion of their total annuity sales is in the fixed indexed annuities product type. In fact, survey results reveal, FIAs account for more than half of all annuities sales for survey respondents, or an average of 53 percent. With FIA sales representing such a high percentage of their annuities revenue, participants said that 20 percent of their total annuities revenue for the previous 12 months came from variable annuities sales, and 13 percent came from fixed annuities sales, other than indexed or hybrid. Immediate annuities represented only six percent of total annuities sales for survey participants, and four percent was from sales of deferred income or “longevity” annuities. Just three percent of total annuities revenue resulted from sales of structured or “hybrid” annuities, and one percent for all other types.