Rising Rates Push Sales of Individual Deferred Annuities Higher: Wink
March 21, 2023 by Allison Bell
Soaring interest rates might complicate the lives of life insurance company risk managers, but they were great for individual fixed annuity sales in the fourth quarter of 2022.
Overall sales of all types of deferred contracts increased 30% between the fourth quarter of 2021 and the latest quarter, to $79 billion, according to new issuer survey data from Wink.
Click HERE to read the full story via ThinkAdvisor
Wink’s Note: I am so excited about annuity sales, that I think I failed to mention why they are up so much.
In short: multi-year guaranteed annuities (MYGAs).
MYGA sales were up 29.65% from 3Q2022, and up 216.85% from 4Q2021. Sales for all of 2022 were up 105.53% from the prior year.
(I guess CD rates sucking hasn’t sucked for annuity sales!)
MYGAs account for nearly half of all annuity sales now!
My thanks to Allison Bell at ThinkAdvisor for the great coverage. – sjm