Annuity Winds Might Be Shifting: Nationwide Executive
March 1, 2023 by Allison Bell
Soaring interest rates have been pushing U.S. sales of fixed annuities higher, and a top annuity issuer executive says he thinks conditions are right for a rebound in variable annuity sales later this year.
Eric Henderson, president of Nationwide’s annuity unit, said in an email interview that relatively high interest rates could keep fixed annuity sales humming, and that investor hopes for a market rebound could help bring variable contract sales back up.
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Wink’s Note: I don’t know if I agree with Eric Henderson of Nationwide on this.
I think that as long as the market remains volatile, Variable Annuity sales are going to suffer.
Plus, with rates being so competitive on Indexed Annuities and Multi-Year Guaranteed Annuities, these products are stealing VA market share.
While it seems logical to “buy low,” I think that Indexed Annuities and Structured Annuities (RILAs) might be stealing the VA thunder.
What do you think? -sjm