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Indexed and MYGA Annuities Eat Market Share Pie: Wink

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Analysts at Wink Inc. say sales of indexed annuities and multi-year guaranteed annuity (MYGA) contracts looked great in the second quarter.

Wink has released only preliminary summary statistics for the U.S. deferred individual annuity market for the latest quarter, not the full results.

(Related: Wink Sees Best Indexed Annuity Sales Growth in 2 Years)

But the Des Moines, Iowa-based firm says indexed annuity sales were 18% higher than in the second quarter of 2017, and MYGA sales were up 27%.

Sales of traditional fixed annuities were 12% lower, Wink says.

Overall annuity sales were up 20%.

Wink bases its annuity sales reports on a survey of issuers of U.S. deferred individual annuities.

The new, preliminary numbers are based on survey data from issuers that account for about 97% of non-variable annuity sales.

The figures do not include sales results for variable annuities or for immediate annuities.

A traditional fixed annuity as an annuity with a one-year guaranteed fixed crediting rate.

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A MYGA contract has a fixed rate that’s guaranteed for more than one year.

ThinkAdvisor Life/Health Math

A year ago, Wink reported seeing $23.5 billion in total U.S. deferred individual non-variable annuity sales, with indexed annuities accounting for $14.6 billion of the sales, MYGA contracts accounting for $7.8 billion, and traditional fixed annuities accounting for $1 billion.

Calculations suggest that total individual non-variable annuity sales may have increased to about $28 billion in the latest quarter, and that the share of sales coming from traditional fixed annuities may have fallen to about 3%, from about 5% in the year-earlier quarter.

Sheryl Moore’s Comments

Sheryl Moore, the author of Wink’s Sales & Market Report, said in a statement about the preliminary results that she thinks recent increases in interest rates and a new regulatory climate will help sales momentum for the rest of the year.

“I would say that the annuity industry is ready to get back to business,” Moore said.

— Read Annuity Sales May Be Starting to Firm Up: Winkon ThinkAdvisor.

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