Earlier this month I blogged about the incredible fixed annuity sales results in the second quarter. Those sales were driven by the popularity of fixed indexed annuity products. In Insurance News Net’s article “Indexed Annuity Sales Dominate with Record-Setting Quarter,” they focus strictly on what happened with indexed annuities in the second quarter based on Wink, Inc.’s indexed sales results. Wink’s Sales & Market Report collected information from 45 indexed annuity carriers, which account for more than 99% of the indexed annuities sold.
Indexed annuity sales in the second quarter of 2014 were $12.6 billion. That was an increase of 15.43% from the first quarter and an increase of 36.54% from the second quarter of 2013. Financial expert Sheryl J. Moore says that indexed annuity products have never before sold like this. Second quarter sales broke records and she expects that more records will be shattered by year end. Allianz Life maintained the top position for indexed annuity sales and held more than 30% of the market share. Their Allianz 360 indexed annuity was the top selling indexed annuity for the third quarter in a row. The rest of the companies in the top five held their spots this quarter as well. They were Security Benefit, American Equity, Great American Insurance Group and Athene USA.
The number of people opting for Guaranteed Lifetime Withdrawal Benefits increased this quarter for the first time in about a year. A little over half of indexed annuity products are bought for the focus on income; the others focus on accumulation. According to the report, indexed life sales also increased over the first quarter numbers and the second quarter numbers last year. The article shows an indexed annuity sales chart detailing quarterly sales from 2002 through today. There was a slow increase overall until the last year when sales really jumped up. Indexed annuities have become increasingly popular for their potential market gains coupled with downside protection. Sales forecasts expect the products to remain strong for the rest of the year.