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Life Health > Annuities > Variable Annuities

Q3 Non-Variable Annuity Sales Were Shocking

By Allison Bell

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U.S. sales of individual non-variable annuities shot up a startling 46% in the third quarter, according to new, preliminary sales data from Wink Inc.

(Related: Indexed Annuities’ Quiet Cousins Ride a Q2 Sales Rocket)

The Des Moines, Iowa-based life and annuity sales information firm based the preliminary figures on survey responses from life insurers that account for about 94% of total U.S. individual non-variable annuity sales.

Wink did not give the dollar value of non-variable annuity sales in the press release announcing the new results. But, a year ago, Wink survey participants reported generating about $20 billion in non-variable annuity sales in the third quarter of 2017.

The new 46% increase figure suggests that insurers might have recorded about $29 billion in individual non-variable annuity sales in the latest quarter.

Wink broke out separate year-over-year sales change estimates for three types of non-variable annuities:

  • Indexed annuities: Up by 38%.
  • Traditional fixed annuities: Up by 29%.
  • Multi-year guaranteed annuity (MYGA) contracts: Up by 63%.

Sheryl Moore, the author of the new Wink sales report, said in a statement about the results that the results reflect issuer sales incentives and the effects of low interest rates on consumer demand.

“Americans have had it with record-low rates on [bank] certificates of deposit accounts,” Moore said in the statement.

— Read Wink Sees Best Indexed Annuity Sales Growth in 2 Years, on ThinkAdvisor.

— Connect with ThinkAdvisor Life/Health on LinkedIn and Twitter.

Allison Bell

Think_Allison

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NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.