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Wink Reports 10% Increase in Individual Deferred Annuity Sales

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What You Need to Know

  • Sales of index-linked variable annuities continue to soar.
  • Indexed annuities that are classified as fixed annuities performed much better than traditional fixed annuities.
  • MYGA sales fell 31%.

Consumers’ inflation fears helped sales of individual annuities that offer income growth potential in the third quarter and hurt sales of other individual annuities.

Wink has reported the details in a summary of results from its latest annuity issuer survey.

Overall sales of individual deferred annuities climbed 10% between the third quarter of 2020 and the third quarter of 2021, to $60 billion.

Sales of both types of variable annuities that Wink tracks climbed more than 25%. Sales of non-variable indexed annuity contracts — which promise to protect the holder’s account value but have features that can increase the crediting rate — also climbed more than 25%.

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Sales of traditional fixed annuities and of multi-year guaranteed annuity contracts, which pay rates that stay fixed through the course of two or more years, fell more than 25%.

Wink based the new annuity sales figures on data from 14 index-linked variable annuity issuers, 48 variable annuity issuers, 57 traditional fixed annuity issuers and 80 multi-year guaranteed annuity (MYGA) issuers.

Here’s a look at how sales of some of the types of annuities Wink tracks changed between the second quarters of 2020 and 2021:

  • Index-linked variable annuity contracts: $9.1 billion (up 46%).
  • Traditional variable annuities: $22 billion (up 27%).
  • Indexed annuities filed as non-variable contracts: $17 billion (up 26%).
  • Traditional fixed annuities: $361 million (down 26%).
  • Multi-year guaranteed annuity contracts: $22 billion (down 31%)