Report: Annuity inflows processed by DTCC rose to $7.5 billion in MayNews added by National Underwriter on July 11, 2012
National Underwriter

National Underwriter

Joined: April 22, 2011

By Warren S. Hersch

Annuity inflows processed by The Depository Trust & Clearing Corporation in May increased by just over 1 percent, according to a new report.

The DTCC’s Insurance & Retirement Services (I&RS), New York, released this finding in a report on activity in the market for annuity products. Published in Analytic Reporting for Annuities, an online information service of National Securities Clearing Corp., a DTCC subsidiary, the report leverages data from the transactions that DTCC processes for the industry.

The report reveals that annuity inflows processed by the DTCC in May increased to $7.5 billion from $7.4 billion in April. Similarly, outflows processed in May increased by almost 4 percent to over $6.4 billion from under $6.2 billion in April.

However, the report says, net flows decreased by more than 12 percent in May, to $1 billion from over $1.2 billion in April.

The divergence of inflows between qualified accounts and non-qualified accounts narrowed again in May. Inflows into qualified accounts were slightly above 58 percent while inflows into non-qualified accounts were at 41 percent, the report reveals.

Although non-qualified accounts attracted 41 percent of inflows in May, net cash flows into nonqualified accounts were negative for the fifth month in a row, meaning that in each of the last five months more funds were withdrawn than added.

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, the report states, are the percentages of inflows processed by DTCC in May:
  • Independent broker/dealers – 27 percent
  • Warehouse sees – 17 percent
  • Regional broker/dealers – 16 percent
  • Bank broker/dealers – 13 percent
  • Insurance broker/dealers – 9 percent
  • Others – 18 percent
Originally published on LifeHealthPro.com
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