Top 25 Firms Account For More Than Half Of All Financial Institution Annuity Sales

According to new Kehrer Bielan research, the 25 largest bank broker dealers produced almost $22 billion in fixed and variable annuity premium last year, 57% of the total sold by all banks and credit unions.

The ten largest third party broker dealers, which support annuity and investment sales in 2,559 banks and credit unions, accounted for 38% of the total annuity premium sold through financial institutions. The remaining 4% was sold in the smaller bank broker dealers or the community banks and credit unions that work with the smaller third party broker dealers.

Share of Total Financial Institution Annuity Sales


The large bank BDs account for somewhat more of the total fixed annuity sales than variable annuity sales. They produced $11.7 billion in fixed annuity premium (58% of the financial institutions channel total) compared to $10.2 billion in variable annuities (56.5%).

The ten largest TPMs accounted for 36% of all fixed annuity premium sold in financial institutions, but 41.2% of variable annuity premium.

Many large bank broker dealers supplement their Financial Advisors with licensed platform bankers, whose sales are skewed toward fixed annuities. The banks and credit unions affiliated with the third party BDs are much less likely to license customer facing bank and credit union staff to sell annuities.

The larger banks have placed more emphasis on transitioning their Advisors to advisory business. We find that variable annuities are more popular in banks and credit unions that still do mostly transaction business.