Multi-year guaranteed annuity (MYGA) sales in the second quarter of 2022 hit $26.2 billion—up more than 79.9% when compared to the previous quarter, and up 81.8% when compared to the same period last year according to the 100th edition of Wink’s Sales & Market Report.
“Multi-Year Guaranteed Annuity sales exploded again this quarter,” said Sheryl Moore, CEO of both Wink, Inc. and Moore Market Intelligence. “Given the most recent rate environment, I project that we can count on next quarter’s MYGA sales being significant as well.”
Total second quarter sales for all categories of deferred annuities were $72.8 billion; an increase of 21.9% compared to the first quarter of 2022 and an increase of more than 12.8% when compared to the same period last year. All deferred annuities include the variable annuity, structured annuity, indexed annuity, traditional fixed annuity, and MYGA product lines.
MYGAs have a fixed rate that is guaranteed for more than one year.
New York Life ranked as the top carrier for MYGA in the second quarter, with a market share of 18.8%. Massachusetts Mutual Life Companies maintained the second-ranked position, while Western-Southern Life Assurance Company, Pacific Life Companies, and AIG rounded out the top five carriers in the market, respectively.
Western-Southern Life’s SmartSelect 3-Year was the top-selling multi-year guaranteed annuity for all channels combined for the second consecutive quarter.
Noteworthy highlights for all deferred annuity sales in the second quarter include New York Life ranking as the top carrier overall for deferred annuity sales, with a market share of 8.5%. MassaMutual moved into second place, while Jackson National Life, Equitable Financial, and Allianz Life rounded out the top five carriers in the market.
Western-Southern Life’s SmartSelect 3-Year, a MYGA, was the No. 1-selling deferred annuity, for all channels combined in overall sales.
Non-variable deferred annuity sales
Total second quarter non-variable deferred annuity sales were $46.3 billion; an increase of 46% compared to the previous quarter and 46.7% compared to the same period last year. Non-variable deferred annuities include the indexed annuity, traditional fixed annuity, and MYGA product lines.
Noteworthy highlights for non-variable deferred annuity sales in the second quarter include New York Life ranking as the No. 1 carrier overall for non-variable deferred annuity sales, with a market share of 10.6%. Mutual Life Companies moved into second place while Athene USA, AIG, and Western-Southern Life Assurance Company completed the top five carriers in the market.
Western-Southern life’s SmartSelect 3-Year, a MYGA, was the #1 selling non-variable deferred annuity, for all channels combined for the second consecutive quarter.
Variable deferred annuity sales
Total second quarter variable deferred annuity sales were $26.4 billion; down 5.4% when compared to the previous quarter and down 19.6% when compared to the same period last year. Variable deferred annuities include structured annuity and variable annuity product lines.
Noteworthy highlights for variable deferred annuity sales in the second quarter include Jackson National Life ranking as the top carrier with a market share of 15.3%. Equitable Financial held onto the second-place position, as Lincoln National Life, Brighthouse Financial, and Prudential concluded the top five.
Jackson National’s Perspective II Flexible Premium Variable & Fixed Deferred Annuity, a variable annuity, was the best-selling variable deferred annuity, for all channels combined in overall sales for the fourteenth consecutive quarter.
Indexed annuity sales
Indexed annuity sales for the second quarter were $19.5 billion; up 17.4% when compared to the previous quarter, and up more than 17.4% when compared with the same period last year. Indexed annuities have a floor of no less than zero percent and limited excess interest that is determined by the performance of an external index, such as Standard and Poor’s 500.
Noteworthy highlights for indexed annuities in the second quarter include Allianz Life ranking as the No. 1 seller with a market share of 12.7%. Athene USA moved into the second-ranked position while AIG, MassMutual and Sammons Financial Companies rounded out the top five carriers in the market, respectively. Allianz Life’s Allianz 222 was the top-selling indexed annuity, for all channels combined.
“For the first time, banks sold more annuities than any distribution channel. That is an amazing testament to the strength of fixed annuity rates, as compared to certificates of deposit (CDs)!”
Traditional fixed annuity sales
Traditional fixed annuity sales were $479.2 million in Q2, up more than 3.3% over the previous quarter, and up 3.7% compared with the same period last year. Traditional fixed annuities have a fixed rate that is guaranteed for one year only.
Modern Woodmen of America ranked as the No. 1 carrier in fixed annuities, with a market share of 18.5%. Global Atlantic Financial Group ranked second, while American National, Western-Southern Life Insurance Company, and Jackson National Life rounded out the top five. Forethought Life’s ForeCare Fixed Annuity was the top-selling fixed annuity, for all channels combined for the eighth consecutive quarter.
Variable annuity sales
Variable annuity sales in the second quarter were $15.9 billion, down 13.9% from the previous quarter and down more than 30.8% from the same period last year. Variable annuities have no floor, and the potential for gains/losses is determined by the performance of the subaccounts that may be invested in an external index, stocks, bonds, commodities, or other investments.
Noteworthy highlights for variable annuities in the second quarter include Jackson National Life ranking as the #1 carrier in variable annuities, with a market share of 22.4%. Equitable Financial ranked second, while New York Life, Nationwide, and Lincoln National Life finished out as the top five carriers in the market, respectively. Jackson National’s Perspective II Flexible Premium Variable & Fixed Deferred Annuity was the #1 selling variable annuity for the fourteenth consecutive quarter, for all channels combined.
Wink reports on indexed annuity, fixed annuity, multi-year guaranteed annuity, structured annuity, variable annuity, and multiple life insurance lines’ product sales. For more information, go to www.WinkIntel.com.
