Group annuities slump, individual market strengthens YOY in Q1

The U.S. annuities market recorded $94.08 billion in total considerations in the first quarter of 2021, a decrease of 5.2% from $99.27 billion in the prior-year period, an S&P Global Market Intelligence analysis showed.

Individual annuity considerations increased 10.6% to $56.99 billion from $51.51 billion in the first quarter of 2020, while group annuity considerations fell 22.3% year over year to $37.09 billion from $47.76 billion.

Transamerica Corp. was the top underwriter of annuities in the U.S. during the period with $5.27 billion of total annuity considerations, down 5.3% from a year earlier. The insurer, which was the third largest underwriter of annuities in the first quarter of 2020, posted the sharpest decline in individual annuity considerations among the largest insurers in the U.S. annuities market with a year-over-year decrease of 30.4%.

New York Life Insurance Co. held onto the second spot with $4.86 billion of total annuity considerations in the first quarter, a decrease of 16.7% from the $5.83 billion in the prior-year quarter.

Jackson Financial Inc. came in at No. 3, with $4.81 billion of total annuity considerations, down from $5.08 billion in the first quarter of 2020.

Athene Holding Ltd. also finished the quarter with $4.81 billion of total annuity considerations, but logged a year-over-year increase of 109.4%. Athene also recorded most growth in the group annuity space among the largest insurers in the U.S. annuities market, as it saw group considerations soar 194.4% year over year.

Massachusetts Mutual Life Insurance Co. slumped to fifth place with $4.70 billion of total annuity considerations, down year over year from $7.08 billion. MassMutual, which was the top underwriter of annuities in the first quarter of 2020, posted the sharpest decline in total annuity considerations among the largest annuity insurers in the U.S., with a year-over-year decline of 33.6%.

The appetite for purchasing new life insurance and annuity products may decline as consumers face temporary or permanent unemployment, potential loss of income and general market volatility over the next few months, according to a report from Deloitte on the impact of COVID-19 on life insurance and annuity companies. On the other hand, the pandemic may also highlight the value of life insurance and annuity products as the economy recovers and consumer behavior stabilizes, according to the report.