Fiduciary Hit to Indexed Annuities?
The spectacular run for indexed annuities is on the wane. Is the fiduciary rule to blame? Yes, but not in the way one would think.
After roughly a decade of increases, total first quarter indexed annuity sales were just over $12.9 billion, down almost 3 percent when compared to the previous quarter, and down over 14.3 percent when compared with the same period last year. The numbers come from Wink’s Sales & Market Report, which points to recent regulatory distractions as the reason.
“The Department of Labor’s Fiduciary Rule is imminent, and taking a toll on indexed annuity sales,” Sheryl J. Moore, president and CEO of both Moore Market Intelligence and Wink, Inc., said in a statement. “Insurance distributors have been so busy preparing for the rule that they haven’t been able to focus on marketing products. Sales show it.”
Total first quarter non-variable deferred annuity sales were $23 billion, which presented a bit of good news and bad news. While it was a 9.7 percent from the prior quarter, it was a 15 percent from the same period a year earlier.
Total first quarter traditional fixed annuity sales were just over $1.1 billion; up more than 5.5 percent when compared to the previous quarter, but down over 6.4 percent when compared with the same period last year.
Allianz Life retained their No. 1 ranking in indexed annuities, with a market share of 13.1 percent. American Equity moved into the second-ranked position, and rounding-out the top five carriers in the market were Athene USA, Nationwide, and Great American Insurance Group, respectively.
New York Life ranks No. 1 overall for non-variable deferred annuity sales, with a market share of 9.6 percent. Allianz Life carried the second position with AIG, Great American, and Global Atlantic rounding-out the top five carriers in the market, respectively.
Jackson National Life took the top spot in fixed annuities, with a market share of 13.2 percent. Modern Woodmen of America attained the second-ranked position. Great American, Reliance Standard, and Global Atlantic Financial Group rounded out the top five carriers in the market, respectively.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of 401(k) Specialist and Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots. Experienced financial services content executive specializing in creative new media delivery. He joined the American Retirement Association in 2023 as Chief Content Officer, overseeing communications for the organization, as well as its sister organizations.
