New York, August 7, 2012 – The Depository Trust & Clearing Corporation (DTCC) Insurance & Retirement Services (I&RS) released today June 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. DTCC processes transactions in annuity products though National Securities Clearing Corporation (NSCC), a DTCC subsidiary, and Analytic Reporting for Annuities is a service offering of NSCC.
In the first half of 2012, I&RS processed almost 24 million annuity transactions totaling nearly $79 billion for:
- 108 insurance company participants (representing 43 parent/holding companies)
- 116 broker/dealers
- 3,202 annuity products
The transactions processed by I&RS provide a view of a broad range of broker/dealers with a particular concentration in non‐proprietary distribution.
In the month of June:
As shown in the following chart, the divergence of inflows between qualified accounts and non-qualified accounts increased in June. Qualified account types attracted more than 59% of total inflows while non-qualified account types attracted less than 41% of inflows.
Although non-qualified accounts attracted over 40% of inflows in June, net cash flows into non-qualified accounts were negative for the sixth month in a row, meaning that in each month in 2012 more funds were withdrawn than added. The following chart shows monthly net cash flows in non-qualified accounts from January 2011 to June 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 June:
- Bank broker/dealers – 13%
- Independent broker/dealers – 28%
- Insurance broker/dealers – 9%
- Other broker/dealers – 19%
- Regional broker/dealers – 15%
- Wirehouses – 17%
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, 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.