Press Releases

Mar 13, 2013 • Press Releases

DTCC Reports Increased Annuity Inflows in January

New York, March 13, 2013 – 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:

Monthly Cash Flows

Key takeaway

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

Monthly Inflows

Percentage 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.

Net Cash Flows

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

State Inflows ($ millions)
CA $565
FL $434
NY $408
TX $386
PA $305

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

Metro Area Inflows ($ millions)
New York-Northern New Jersey-Long Island $434
Los Angeles-Long Beach-Santa Ana $213
Chicago-Naperville-Joliet $166
Philadelphia-Camden-Wilmington $154
Detroit-Warren-Livonia $153

 

About Analytic Reporting

Analytic Reporting for Annuities is an online information solution containing aggregated data from transactions processed by DTCC's Insurance & Retirement Services (I&RS). 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. It 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 to three 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. 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.

Visit http://www.dtcc.com/analytics for more information about the Analytic Reporting Service.

About DTCC

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’s subsidiaries 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 http://www.dtcc.com/. Follow us on Twitter: http://twitter.com/The_DTCC.

The Analytic Reporting Service is a service offering of National Securities Clearing Corporation ("NSCC"), a clearing agency registered with the U.S. Securities and Exchange Commission and wholly-owned subsidiary of DTCC.

For Release: Immediately

Contacts

Robin Shapiro

Email

rshapiro@dtcc.com

Phone

212-855-3254


Kasi Martin
kmartin@dtcc.com
(813) 470-2153
dtccdotcom