New York, June 4, 2012 – The Depository Trust & Clearing Corporation (DTCC) Insurance & Retirement Services (I&RS) released today April 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.
- Annuity inflows processed by DTCC in April decreased by over 4%, to $7.4 billion from $7.7 billion in March.
- Out flows processed in April decreased by over 3% to under $6.2 billion from over $6.4 billion in March.
- Net flows decreased by almost 8% in April, to $1.2 billion from over $1.3 billion in March.
Over the past 13 months the overall trend in activity has been down, as reflected in the following chart:
As shown in the following chart, the divergence of inflows between qualified accounts and non-qualified accounts narrowed slightly in April. Inflows into qualified account types were slightly under 60% while inflows into non-qualified account types were slightly above 40%.
Although non-qualified accounts attracted over 40% of inflows in April, net cash flows into non-qualified accounts were negative for the fourth month in a row, meaning that in each of the last four months more funds were withdrawn than added. The following chart shows monthly net cash flows in non-qualified accounts from January 2011 to April 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 April:
- Independent broker/dealers – 28%
- Wirehouses – 15%
- Regional broker/dealers – 15%
- Bank broker/dealers – 13%
- Insurance broker/dealers – 10%
- Others – 18%
Through operating facilities and data centers around the world, DTCC and its subsidiary companies automate, centralize and standardize the post-trade processing of financial transactions for thousands of institutions worldwide. With more than 40 years of experience, DTCC is the premier post-trade infrastructure for the global financial markets, simplifying the complexities of clearance, settlement, asset servicing, global data management and information services for equities, corporate and municipal bonds, government and mortgage-backed securities, derivatives, money market instruments, syndicated loans, mutual funds, alternative investment products, and insurance transactions. In 2011, DTCC processed securities transactions valued at approximately US$1.7 quadrillion. Its depository provides custody and asset servicing for securities issues from 122 countries and territories valued at US$39.5 trillion. DTCC’s global OTC derivatives trade repositories hold records on more than US$500 trillion in gross notional value on transactions across multiple asset classes globally. 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.