John Hancock overtakes Transamerica as top group annuity underwriter in Q1

Minimal growth in direct considerations did not stop John Hancock from moving to the top of the list of the largest U.S. group annuity underwriters in the first quarter.

Transamerica takes big tumble

Despite posting a 0.1% year-over-year increase in direct group considerations, John Hancock replaced Transamerica as the No. 1 group annuity writer, holding 9.71% of the U.S. market by the end of the first quarter. Transamerica dropped to fourth place after recording a 15.4% year-over-year decline in considerations.

Of the biggest group annuity underwriters, MetLife Inc. had the highest year-over-year increase in direct group considerations at 119%. The insurer rose to second from eighth after achieving $4.10 billion in considerations, just $95.6 million lower than John Hancock's figure.

Prudential Financial Inc. had the second-largest increase in direct group considerations at 59.5%, catapulting it to the top three in the first-quarter ranking from sixth place a year ago.

Voya Financial Inc. and Massachusetts Mutual Life Insurance Co. also experienced group annuity consideration growth but still slid to fifth and sixth place, respectively.

Athene Holding Ltd. fell out of the top five after recording the largest decline in direct group considerations at 33.4%.

* Download an Excel template to compare demographic data in the annuity market. * Click here to read an in-depth discussion about the future of the annuity business.

AIG leads individual annuity underwriters

A number of the largest underwriters saw direct individual considerations decline by double digits in the first quarter. The individual annuities market overall grew by just 0.3% year over year, compared to the 16.4% increase in group annuity considerations.

Following a 10.1% decline in considerations, Jackson Financial Inc. ceded the top spot to American International Group Inc., which recorded year-over-year growth of 15.8%.

Global Atlantic Financial Group Ltd. logged the largest year-over-year decrease in direct individual considerations at 16.8%.

MassMutual had the biggest increase in direct individual considerations at 73.5%. The insurer scored $3.10 billion in considerations in the first quarter, closely trailing behind Equitable Holdings Inc.'s $3.13 billion.

Fixed annuity products reign in Q1

Fixed annuity products were a major contributor to the 4% increase in total U.S. annuity sales in the first quarter, according to the Life Office Management Association's Secure Retirement Institute.

Demand for fixed-indexed annuity and fixed-rate deferred products increased as investors prioritized principal protection and steady growth amid rising interest rates and increased market volatility, said Todd Giesing, a director of annuity research with LIMRA.

AIG in the first quarter saw "one of its strongest fixed annuity sales quarters in over a decade" due to its partnership with Blackstone Inc., CFO Shane Fitzsimons said during an earnings call.

Jackson Financial in the period doubled down on its commitment to registered index-linked annuities, or RILA, which CEO Laura Prieskorn in an earnings call said provides the best opportunity for growth given its capital efficiency and favorable risk profile.

Industrywide, registered index-linked annuity sales were $9.3 billion in the first quarter, up 2% year over year, but down 10% from the fourth quarter of 2021, according to preliminary results from a LIMRA survey.