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Strong MYGA Sales Boost Q3 Annuity Sales Totals

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U.S. sales of individual deferred annuities started to firm up in the third quarter, according to new issuer survey data from Wink.

The survey participants reported a total of $54 billion in deferred annuity sales.

Sales were 1.1% lower than in the third quarter of 2019, but sales were up 18% when compared with the second quarter of this year.

Sales of multi-year-guaranteed annuity (MYGA) contracts have been especially strong: MYGA sales were 33% higher than in the second quarter, and 70% higher than in the third quarter of 2019.

A MYGA contract offers a guaranteed crediting rate for a specified number of years.

Resources

  • A copy of Wink’s latest survey summary is available here.
  • An article about the Wink numbers for the previous quarter is available here.

Year-over-year annuity sales comparisons usually get more attention than sequential comparisons, because of the effects of factors such as the April 15 individual income tax filing deadline on the annuity sales calendar.

This year, sequential comparisons are getting more attention, because of interest in the effects of the COVID-19 pandemic and pandemic-related social distancing efforts on annuity sales.

The third quarter began July 1 and ended Sept. 30.

Sales of individual variable annuities, including structured annuities, or indexed annuities that are registered as variable insurance products with the U.S. Securities and Exchange Commission, fell 10% between the third quarter of 2019 and the latest quarter, to $23 billion.

Sales of individual non-variable annuities increased 7.1%, to $31 billion.

Although variable annuity sales were lower in the latest quarter than in the year-earlier quarter, variable annuity sales were 16% higher than in the second quarter of this year.

Here’s a look at how sales of the types of annuities Wink tracks changed between the third quarter of 2019 and the latest quarter:

  • Multi-Year Guaranteed Annuity  contracts: $17 billion (up 70%)
  • Structured Annuities: $6.2 billion (up 30%)
  • Variable Annuities (including structured annuities): $23 billion (down 10%)
  • Indexed Annuities Filed as Non-Variable Contracts: $14 billion (down 26%)
  • Traditional Fixed Annuities: $489 million (down 33%)

Wink collected third-quarter annuity sales data from 13 structured annuity issuers, 46 variable annuity issuers, 47 fixed annuity issuers, 62 indexed annuity issuers and 69 MYGA issuers.

— Read Non-Variable Annuity Sales Still Look Good: Survey Manageron ThinkAdvisor.

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