According to Insurance Networking News’ Justin Stephani, “Annuity Writers Show Significant Growth.” In a fixed annuity study performed by Beacon Research, they found that despite an annuity rates comparison showing declining interest rates, fixed annuity sales increased 8% quarter to quarter and 3% year to year. These results from the first half of this year coincide with similar reports from LIMRA and the Insured Retirement Institute. LIMRA found a 19% year over year increase for total annuity sales, in the period ending June 30. The IRI reported a 10% increase for the second quarter’s year over year figures and a quarterly sales increase of 4%.
Beacon research was expecting increases in the indexed and income annuity products, especially because indexed annuity cap rates are still desirable compared to other choices. They were expecting declines in both types of fixed annuities because of low interest rates, but only saw a decline in one of them. Fixed rate non-market value adjusted (MVA) annuities were the only category to decline, dropping 5%. Fixed rate MVA’s actually increased 4%, probably because investors seeking higher yields were happy with the slightly higher rates offered. Income annuities increased 30% and indexed annuities went up 18%. Western National Life sold more than $2 billion in fixed annuities for the top spot, followed by Allianz and New York Life.
Written by Rachel Summit