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.