Annuity News

Annuity Sales Soar In Flight To Safety

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Fixed-rate deferred annuity sales spiked in March, rocketing 57% over the previous month as a flight to safety took off, according to early figures from the Secure Retirement Institute.

In March, agents and advisors were anecdotally reporting a high level of engagement with prospects and clients eager for safer options with their money. Sellers were also scrambling to sign clients for annuities before carriers could pull products or lower rates, which companies did at a record clip.

LIMRA data confirms the jump in fixed-rate deferred annuity sales and fixed indexed annuities also had a bump at a respectable 22% month over month, according to Todd Giesing, SRI’s annuity research director.

The rush to safety reversed direction for annuities, which were struggling in the strong headwinds from historically low interest rates, Giesing said.

“We started the year [2019] with a 3% 10-year treasury,” Giesing said. “We ended the year somewhere around 1.9%. So, sales were steadily falling for products like fixed-rate deferred and indexed annuities throughout 2019 and as we looked at the first quarter of 2020, we expected that slide to continue.”

Originally Published on insurancenewsnet.com >

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