Executives at U.S annuity issuers and distributors had an uncommon expertise throughout their newest spherical of earnings calls: Wall Road securities analysts had been eager about listening to about annuities.
The analysts inform traders what’s scorching and what’s not. Insurers and different U.S. corporations that promote inventory to the general public often maintain public convention calls with the analysts each three months to speak about their efficiency. The businesses stream the calls reside on the internet and publish recordings on their web sites.
For many years, investor pleasure has often concerned suppliers of web-based providers and sellers of merchandise like cell telephones and scorching new pharmaceuticals.
Over the previous 12 months, nevertheless, a few of the hardy analysts who nonetheless monitor the life and annuity sector have observed that annuity gross sales are booming, and that the publicly traded issuers are inclined to pay regular dividends or reward shareholders by shopping for again shares of their very own inventory.
Complete U.S. gross sales of particular person annuities soared to $115 billion within the fourth quarter of 2023, up 29% from the overall recorded within the fourth quarter of 2022, in line with LIMRA.
Gross sales of registered index-linked annuities climbed 29%, to $13 billion, and gross sales of fixed-rate deferred annuities climbed 52%, to $59 billion.
Executives at corporations within the annuity market talked fortunately about booming gross sales, after which they received into the small print. Right here’s a have a look at seven concepts that got here up, drawn from what the executives mentioned on This autumn earnings calls.
Credit score: Bloomberg