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.
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.