What You Need to Know
- Structured annuities were the sales leaders, up 86%.
- MYGA contracts also sold well, up 32%.
- Traditional fixed annuities sold poorly.
Low interest rates are continuing to push U.S. life insurers toward offering annuities without minimum annual return guarantee, according to new issuer survey data from Wink Inc.
U.S. sales of individual deferred annuities climbed to $58 billion, up 10% from the total for the first quarter of 2020, the Des Moines, Iowa-based firm says.
Wink based the new figures on reports from 14 structured annuity issuers, 48 variable annuity issuers, 59 fixed annuity issuers and 79 multi-year guaranteed annuity (MYGA) issuers.
The issuers increased sales of three types of non-variable annuities 5.8%, to $28 billion.
Variable annuities sales jumped 18%, to $30 billion.