Filed Under:Annuities, Variable

DTCC: Annuity Inflows Dipped 19% in September

This chart shows the breakdown of annuity product inflows by distribution channel in the third quarter. Source: DTCC Insurance & Retirement Services.
This chart shows the breakdown of annuity product inflows by distribution channel in the third quarter. Source: DTCC Insurance & Retirement Services.

Inflows for all annuity types processed in September declined by 19%, according to a new report.

The Depository Trust & Clearing Corporation (DTCC) Insurance & Retirement Services (I&RS) reported this finding in a September survey on activity in the market for annuity products from its Analytic Reporting for Annuities online information service. The report is based on the transactions that DTCC processes for the industry.

The report shows that annuity inflows dipped to $6.7 billion in September from $8.3 billion in August. However, annuity inflows were at their highest so far this year in March, at nearly $8.8 billion.

Among the report’s other findings:

  • Quarterly inflows and net flows showed only slight changes since the beginning of the year.
  • September inflows went primarily into IRA accounts and non-qualified accounts, with a small percentage going into 401k accounts. The percentage of inflows going in to Regular IRA accounts was nearly 50%, while non-qualified accounts received 40% of inflows. Accounts in 401k plans received almost 6% of annuity inflows.
  • Regular IRA accounts took the lion’s share of net flows in September with 85%, or nearly $1.8 billion. 401k plans attracted almost 13% of net flows, with almost $265 million, while non-qualified accounts attracted only 4% of net flows, or just under $87 million.
  • Over the past 12 months, 77% of positive net flows have gone into regular IRA accounts and 12% have gone into 401k accounts. Non-qualified accounts attracted 7% of net flows.
  • 522 annuity products saw positive net flows in September, while 2,105 annuity products saw negative net flows, where the amount of money redeemed exceeded the amount of money invested.

Analytic Reporting for Annuities is an online information solution containing aggregated data from transactions processed by DTCC’s Insurance & Retirement Services. I&RS is the central messaging connection for annuity and life insurance transactions, enabling insurance companies to provide broker/dealers with daily financial transaction information. I&RS processes approximately 150 million transactions each month.

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Nichole Morford

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