Fixed Indexed Annuities Stage a Comeback
August 13, 2019 by Bernice Napach
Fixed indexed annuities are making a comeback following the demise of the Labor Department fiduciary rule last year and rising volatility in the current stock market, according to a new report from Cerulli Associates.
In the first quarter of 2019, sales of fixed indexed annuities (FIAs), which guarantee a minimum rate of return usually tied to the performance of an equity index, totaled $18 billion, up 24% from the year-ago quarter.
That’s roughly twice the annual sales growth they experienced between 2011 and 2016, before the introduction of the DOL fiduciary rule, which crushed sales
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Wink’s note:
1. Indexed annuity sales 1Q19 were NOT double 1Q16; there was only a 17.37% increase over this period?
2. The DOL’s rule did not “crush” sales; they declined a whopping 7.10%.
3. Structured annuities are not a sub-type of indexed annuity; indexed annuities are fixed insurance products and structured annuities are securities.
-sjm