Income annuity sales in the US rose by 22.9%
year-on-year (YoY) in Q1 2012 and were the quarter’s bestselling
products for the first time, says a study.
Data from the Beacon Research Fixed Annuity
Premium Study noted that sales of indexed annuities also grew by
8.9% YoY in Q1 2012.
Go deeper with GlobalData
Overall, total fixed annuity sales
were $16.9bn in Q1 2012, an 8.8% drop compared to the same period a
year ago.
The study found that New York Life’s Lifetime
Income Annuity was the top selling product of the quarter.
The next four bestsellers in Q1 2012 were all
indexed annuities, including two offerings from Aviva.
Providers’ performance
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataIn terms of fixed annuity sales, Allianz Life
was the best performer with almost 1.5bn annuities sold, followed
by Aviva USA, New York Life, American Equity and Great
American.
Jeremy Alexander, CEO of Beacon Research,
said: “Both [income and indexed annuities] did well despite lower
interest rates due to demand for guarantees in general and reliable
retirement income in particular.” He added: “The success of New
York Life’s deferred income annuity also helped boost overall
income annuity results, and indexed annuity cap rates looked
comparatively good relative to CD and annuity fixed rates.”
Looking forward, Alexander said: “As carriers
respond to the low rate environment, we expect to see more (market
value adjustments) MVAs, unbundled product features, and guaranteed
lifetime withdrawal benefit (GLWB) rollup rates that vary based on
credited interest.”
