Sales of indexed annuities did well in the second quarter, but sales of multi-year guaranteed annuity (MYGA) contracts did even better, according to Wink Inc.’s full sales data for the quarter.
Wink’s numbers include results for individual deferred annuities sold in the United States.
Sales of indexed annuities increased 18% between the second quarter of 2017 and the latest quarter, to $17 billion, according to Wink.
Sales of MYGA contracts soared 27%, to $10 billion.
Total non-variable annuity sales increased 20%, to $28 billion.
An indexed annuity offers a minimum interest rate of zero, along with an extra amount of interest that depends on the performance of an investment index, such as a stock market index, or a bond market index.
An issuer of a MYGA contract promises to pay a fixed rate of interest for more than one year.
In the second quarter of 2017, the top-selling MYGA contract was Forethought Life’s SecureFore 3 Fixed Annuity. In the latest quarter, the top-selling MYGA contract was Forethought’s Secure 5 Fixed Annuity.
Allianz Life continued to have the top-selling indexed annuity on the market.
The average commission was 6.21% of premium for indexed annuities and 2.28% of premium for MYGA contracts, according to Wink data.
Wink bases its annuity sales data on an issuer survey. The new Wink report includes information from more insurers than a preliminary version of the report released last week.
A year ago, sales of indexed annuities were starting to recover from the effects of the U.S. Department of Labor’s fiduciary rule project.
Sheryl Moore, Wink’s president, said in a statement about the latest indexed annuity sales results that they set a record.
“I’d say that indexed annuities are back in business,” Moore said.
— Read Indexed and MYGA Annuities Eat Market Share Pie: Wink, on ThinkAdvisor.