Falling interest rates may be starting to squeeze U.S. sales of individual non-variable deferred annuities.
Sales of individual deferred fixed annuities, and individual deferred indexed annuities filed as fixed products, fell to $29 billion in the third quarter, down 12% from the total for the third quarter of 2018, according to new issuer survey data from Wink Inc.
Wink began tracking individual deferred variable annuities earlier this year. Survey participants reported making $26 billion in variable annuity sales.
Some indexed annuities are registered with the U.S. Securities and Exchange Commission as variable-rate securities. Other indexed annuities, which come with principal protection guarantees, are classified by regulators as non-variable annuities.
Sales of the non-variable indexed annuities increased 5.5% when compared with results for the third quarter of 2018, to $19 billion, according to Wink survey data.
Sales of SEC-registered indexed annuities increased 61%, to $4.7 billion.