DTCC Reports Increased Annuity Inflows In January

The Depository Trust & Clearing Corporation (DTCC) Insurance & Retirement Services (I&RS) has released key findings on activity and trends in the market for annuity products in January. The report is based on data, obtained from the millions of transactions processed by and entrusted to I&RS, available through its online Analytic Reporting for Annuities information service.

Comparisons to prior periods

Annuity inflows processed by I&RS in January increased by 7.4%, to $7.1 billion, from $6.6 billion in December. Inflows were up almost 15% compared to January 2012.

• Out flows, at $6.8 billion, changed insignificantly from December.
• Net flows increased by almost $466 million in January, from negative $140 million in December, to more than $325 million.
• The trend in activity over the past 13 months is reflected in the following chart:

Key takeaway

IRA accounts attracted 47% of all inflows in January, while non-qualified accounts attracted 41% of inflows.

Key takeaway

Factoring out flows into the equation, non-qualified accounts experienced negative net cash flows of more than $546 million in January compared to IRA accounts, which had positive net cash flows of more than $884 million for the month.

The top five states accounted for over one third of all annuity inflows in January:

The top five metropolitan areas accounted for over 18% of all annuity inflows in January: