New York, April 17, 2012 – The Depository Trust & Clearing Corporation (DTCC) Insurance & Retirement Services (I&RS) released today March and first quarter information on activity in the market for annuity products from its award-winning Analytic Reporting for Annuities online information service, which leverages data from the transactions that DTCC processes for the industry. Analytic Reporting for Annuities is a service offering of National Securities Clearing Corporation, a DTCC subsidiary.
The charts for this release can be viewed at: http://www.dtcc.com/news/press/releases/2012/march.pdf.
- Annuity inflows processed by DTCC in March increased by almost 10%, to $7.7 billion from $7 billion in February.
- Out flows processed in March increased by almost 12% to $6.4 billion from $5.7 billion in February.
- Net flows were almost unchanged in March, increasing one half of one percent from just under $1.3 billion to just over $1.3 billion.
Inflows and net flows have increased in each of the first three months of 2012, breaking a declining trend in 2011.
The trend in activity over the past 13 months is reflected in the following chart.
Inflows and net flows were down in the first quarter of 2012 compared to the first quarter of 2011. Out flows increased. The following chart provides the quarter-to-quarter comparison.
The increasing divergence of inflows between qualified accounts and non-qualified accounts continued in March. Inflows into qualified account types were slightly under 61% while inflows into non-qualified account types were slightly above 39%.
Although non-qualified accounts attracted 39% of inflows in March, net cash flows into non-qualified accounts were negative for the third month in a row, meaning that in each of the last three months more funds were withdrawn than added. The following chart shows monthly net cash flows in non-qualified accounts from January 2011 to March of 2012.
In August 2011, DTCC joined forces with the Retirement Income Industry Association (RIIA) to analyze cash flows by RIIA-defined broker/dealer distribution channels and product categories. For the six distribution channels defined by RIIA, the following are the percentages of inflows processed by DTCC I&RS in January:
- Independent broker/dealers – 29%
- Wirehouses – 16%
- Regional broker/dealers – 15%
- Bank broker/dealers – 14%
- Insurance broker/dealers – 9%
- Others – 18%
DTCC, through its subsidiaries, provides clearance, settlement and information services for equities, corporate and municipal bonds, government and mortgage-backed securities, money market instruments and over-the-counter derivatives. In addition, DTCC is a leading processor of mutual funds and insurance transactions, linking funds and carriers with their distribution networks. DTCC’s depository provides custody and asset servicing for almost 3.7 million securities issues from the United States and 121 other countries and territories, valued at US$39.5 trillion. In 2011, DTCC settled nearly US$1.7 quadrillion in securities transactions. DTCC has operating facilities and data centers in multiple locations in the United States and overseas. For more information, please visit www.dtcc.com.
About Analytic Reporting and I&RS
Analytic Reporting for Annuities is an award winning online information solution containing aggregated data from transactions processed by the I&RS of DTCC. 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.
Because Analytic Reporting is based on processed transactions, not surveyed data, Analytic Reporting gives DTCC customers a unique and unprecedented view of their own business as well as the market for annuity products so that they can discover key trends and identify opportunities. With updates approximately two weeks after each month-end, Analytic Reporting allows users to assess their business and access industry intelligence to support management decisions about sales, sales management, marketing and product offerings. Analytic Reporting is a hosted turnkey solution, available online anywhere, anytime to DTCC customers. DTCC customers don't have to store or manage the data. They don't have to develop applications or run SQL queries to obtain the business information they rely on for decision-making.
See DTCC’s web site at http://www.dtcc.com/analytics for more information about the service.