Hey there,
Every quarter, I like to take a moment to pull back the curtain and look at what’s really happening in the annuity world. It’s one thing to talk about these products in theory, but it’s another to see where people are actually putting their hard-earned money.
The latest report from my friends over at Wink just dropped, and it gives us a fantastic snapshot of the third quarter. Think of it as the industry’s report card. And let me tell you, it was a busy quarter.
So, grab a coffee, and let's dig into these numbers together. We’ll look at who’s leading the pack, which products are gaining steam, and what this might mean for anyone thinking about their own retirement strategy.
The Big Picture: A $117 Billion Quarter
First up, the headline number. Total annuity sales for the third quarter hit $117.0 billion. That’s a pretty staggering figure. It’s a slight bump up—1.8% from last quarter and 1.5% from this time last year. It tells me that despite all the noise in the market, people are still consistently turning to annuities for a piece of their retirement puzzle.
So, who are the big players right now? Here’s how the top five carriers stacked up for overall sales:
- Athene USA: They took the crown with a 9.1% market share.
- Nationwide
- Jackson National Life
- Corebridge Financial
- New York Life
It's always interesting to see these titans battling it out, and Athene really made a statement this quarter.
Deferred Annuities Just Hit a New Record
Now, here’s where things get really interesting. When we look specifically at deferred annuities—the kind you buy now to receive income later—sales hit a record-breaking $113.2 billion. That’s the highest it’s been since Wink started tracking this stuff.
The leaderboard for deferred annuities looks pretty similar to the overall one, with Athene USA again in the top spot, holding an impressive 9.4% of the market. Nationwide, Jackson, Corebridge, and Allianz Life rounded out the top five.
And what was the single most popular deferred annuity product out there? That honor goes to Nationwide’s Nationwide Secure Growth 5-Year, a multi-year guaranteed annuity (or MYGA). This tells you a lot right there—in a world of uncertainty, a product that offers a guaranteed rate for five years has some serious appeal.
A Tale of Two Annuities: The Fixed vs. Variable Story
Digging a little deeper, we see a fascinating split in the market.
On one side, you have the non-variable deferred annuities. This bucket includes those reliable MYGAs, traditional fixed annuities, and indexed annuities. Sales here were actually down a bit, landing at $75.6 billion. That’s a 2.9% dip from the previous quarter. Athene was the dominant force here, capturing 13.5% of this market.
But on the other side, we have the variable deferred annuities, which include structured and traditional variable products. And wow, did they have a quarter. Sales shot up to $37.5 billion, which is a massive 11.7% jump from last quarter and a 20.3% surge compared to last year.
This tells me that while many people are seeking safety, a growing number of folks are comfortable taking on a bit more market risk for the potential of higher returns. The leader in this space was Jackson National Life, with a solid 16.1% market share.
What About Immediate Income?
Of course, not everyone is in the "wait and see" phase. Some people need income now. That’s where income annuities come in.
Sales for these products, which include Single Premium Immediate Annuities (SPIAs) and Deferred Income Annuities (DIAs), came in at $3.8 billion. While that's up a healthy 15.3% from the prior quarter, it's down a bit from last year.
And if you’re wondering who absolutely owns this space, it’s not even a contest. New York Life is the undisputed champion of income annuities, with a staggering 41.0% market share. They've truly made this their specialty.
A Closer Look at the Products People Are Choosing
Okay, let's get granular and look at the specific types of annuities that drove these numbers. This is where you can really see the trends taking shape.
Multi-Year Guaranteed Annuities (MYGAs)
These are the "set it and forget it" options with a guaranteed rate for a specific term. Sales were strong at $42.6 billion, though that was a slight dip from the prior quarter. As we saw earlier, Athene and Nationwide are the big dogs here, with Nationwide’s product being the top seller.
Indexed Annuities
These products offer a really cool balance: protection from market downturns with the potential to earn interest based on a market index like the S&P 500. Sales were $32.4 billion. Athene was the top seller here, too, with their Athene Ascent Pro 10 being the most popular indexed annuity.
Sheryl Moore, the CEO of Wink, chimed in on this, and I think her take is spot on. She said, “The innovation that I am seeing in the indexed annuity market is incredible. I project that these products will become even more consumer friendly, as sales of these products increase.” I couldn't agree more; we're seeing more and more creative features that give people flexibility and growth potential.
Structured Annuities
This is where the real fireworks were. Structured annuities, which offer a buffer against a certain amount of market loss while still providing upside potential, had a record-breaking quarter with $19.9 billion in sales. That’s a 9.5% jump from just last quarter!
Equitable Financial is the clear leader here, and their Structured Capital Strategies Plus 21 has been the top-selling product for an incredible six quarters in a row. Sheryl Moore hinted at some major moves in this space, saying a long-time variable annuity leader is "moving mountains" to take the top spot. It sounds like the competition here is just heating up!
Variable Annuities
The classic variable annuity, where your money is invested in subaccounts similar to mutual funds, also had a fantastic quarter. Sales hit $17.5 billion, a jump of over 14% from the previous quarter.
And when you talk about variable annuities, you have to talk about Jackson National Life. They are simply dominant. Their Perspective II Flexible Premium Variable & Fixed Deferred Annuity has been the #1 seller for an unbelievable twenty-six consecutive quarters. That’s not a typo. That’s more than six years of being on top.
It just goes to show that when you find a product that resonates with advisors and their clients, you can build some serious, long-lasting momentum.
So, What's the Takeaway?
Whew, that was a lot of numbers, I know. But when you step back, a clear picture emerges. The annuity market is healthy and growing, but it's not one-size-fits-all.
We're seeing a real divergence. On one hand, the demand for safety and guarantees is still incredibly strong, with MYGAs leading the pack in total volume. On the other hand, the explosive growth in structured and variable annuities shows a renewed appetite for growth potential, especially in products that offer some innovative ways to manage risk.
It's a reminder that there's a tool for every job. Whether you're looking for a simple, guaranteed income stream or a more dynamic way to grow your retirement nest egg, the industry is clearly responding with a wide range of options. It’ll be fascinating to see how these trends continue to play out in the months ahead.
