02.06.25

Prudential Sees Interest Rate Winds Hurting MYGAs, Helping RILAs

by: Allison Bell

Caroline Feeney, the head of Prudential Financial's U.S. businesses, said during a conference call with securities analysts that overall sales should be strong even if the outlook for some annuities is rosier than for others. The company is predicting that total account value for the annuities the company wants to sell will grow 20-25% this year to more than $50 billion. Feeny shared that because of recent interest rate decreases, Prudential is seeing a shift from multi-year guaranteed annuities (MYGAs), which are more sensitive to rates, to indexed products such as registered index-linked annuities (RILAs). However, the U.S. population is still aging, and the effect of falling rates on assets in money market funds and fixed annuities with surrender-charge periods that are ending is putting a high volume of money in motion, Feeney added.

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