Indexed and MYGA Annuities Eat Market Share Pie: Wink

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: Wink, on ThinkAdvisor.

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