Banks Rebound in Third Quarter to Drive Fixed-Rate Deferred Annuities Growth
November 24, 2020 by Secure Retirement Institute
WINDSOR, Conn., Nov. 17, 2020—Fixed-rate deferred (FRD) annuity sales surged 60% in the third quarter to $15.8 billion, driven in part by strong sales through banks, according to the Secure Retirement Institute® (SRI®) U.S. Individual Annuity Sales Survey.
“Despite the 10-year treasury rates remaining below 1%, FRD annuities were the largest driver of sales growth in the third quarter. With $6.54 billion in fixed-rate deferred sales in the third quarter — nearly $3 billion higher that the second quarter — bank sales represented over 41% of all FRD annuity sales in the third quarter, an increase of 73% from the prior quarter and 85% year-over-year,” noted Todd Giesing, senior annuity research director, SRI. “Because bank branches were closed during the early stages of the pandemic, annuity sales dropped significantly earlier in the year. As the U.S. slowly opened up in the second and third quarters and investors sought out protection products, bank sales rebounded.”
Click HERE To read the full story via Advisor Magazine