08.22.24
Traditional Variable Annuities Join the Sales Party
by: Allison Bell
Annuity sales saw modest growth in the second quarter of 2024, rising nearly 4 percent from the previous quarter, according to a new report from market research firm Wink.
In its latest Sales & Market Report, Wink said annuity sales for Q2 ticked up to reach $109 billion, with some product lines achieving record-setting results as others experienced declines due to shifting interest rates. Nearly all those dollars — roughly $104 billion — came from deferred annuity sales, which increased slightly from Q1 2024 and surged nearly 33 percent compared to the same period last year. Multi-year guaranteed annuities (MYGAs) saw a decline of over 6 percent from the previous quarter due to rate drops and increased demand from competing product lines. Despite this, MYGA sales still grew more than 34 percent year-over-year, totaling some $41 billion for the quarter. Wink noted that MYGAs were coming off their second-highest quarter on record, making it difficult to surpass past performance. Fixed-rate annuities faced similar challenges, with a more than 7 percent decline from the previous quarter attributed to falling rates, though the products showed modest year-over-year sales growth. The report suggests that continued rate declines could lead to further losses in fixed annuities in 2024. In contrast, indexed annuities saw robust double-digit growth to post a record quarter, with sales climbing more than 10 percent from Q1 and nearly 30 percent year-over-year to reach $32 billion. The report attributed this to competitive gains and favorable market conditions.
Read the full article on Think Advisor