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    GSAM Insights

    ANNUITY INDUSTRY SURVEY 2022

    September 13, 2022  |  5 Minute Read

     

    The second annual Goldman Sachs Asset Management Annuity Industry Survey was conducted amidst a backdrop characterized by soaring inflation, geopolitical tensions and persistently elevated volatility. Despite a challenging macro environment, the annuity industry has rebounded strongly in the first half of 2022 representing a growing appetite for existing products and an opportunity for new product development.  This year's title “Forging Ahead” underscores that insurance carriers view the evolving market landscape as an opportunistic driver of product innovation and new distribution paths looking to investments as sources of differentiation and growth.

     

     

    Summary of Respondents

    This year, we received input from 120 industry participants, a 15% increase in participation over last year. The survey responses have been aggregated from 26 insurance companies representing over $1.1 trillion1 in variable annuity net assets—including 9 of the top 10 annuity issuers by net assets. Similar to last year, over 60% of respondents have 15+ years of insurance experience representing extensive tenure and expertise in the industry.

     

    Key Findings

    Our findings are grouped into three principal areas: global macroeconomic and investment landscape, product offerings and innovative implementation, and industry and distribution themes. Select key findings are below.

     

     

    1. Drivers of investment decisions

    Top concerns driving investment decisions in the annuity space are: credit & equity market volatility, an economic slowdown/recession in the US, and inflation.

     

     

    Which of the following issues pose the greatest macroeconomic risk to your investment portfolio? Please select and rank your top three. (%)

     

    2. Top Investment Priorities

    Sixty-five percent of respondents highlighted structured/buffered solutions as the top investment strategy they are looking to prioritize in their annuity lineup for the next 12 months.

     

     

    Which of the following investment strategies are you most likely to prioritize on your annuity lineup in the next 12 months? Please select 3 strategies. (%)

     

    3. Desired Distribution Resources

    Annuity advocacy, market insights and practice management were the top three most sought after value-added resources by respondents.

     

     

    From a partnership standpoint, what types of value-added resources are most important to you and the advisors you work with? Please select and rank the top 3 resources. (%)

     

     

    This year's survey results indicate that the evolving market landscape, increasing interest rate environment, and aging US population position the annuity industry for growth, expansion, and innovation.

     

     
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    1 Data as of 3/31/2022.

    Views expressed discussed are those of survey respondents, compiled by Goldman Sachs Asset Management as of July 20, 2022. This material is provided for educational purposes only and should not be construed as investment advice or an offer or solicitation to buy or sell securities. This material is provided at your request for informational purposes only. It is not an offer or solicitation to buy or sell any securities.

    Views and opinions expressed are for informational purposes only and do not constitute a recommendation by Goldman Sachs Asset Management to buy, sell, or hold any security. Views and opinions and may be subject to change, they should not be construed as investment advice.

    Economic and market forecasts presented herein reflect a series of assumptions and judgments as of the date of this presentation and are subject to change without notice. These forecasts do not take into account the specific investment objectives, restrictions, tax and financial situation or other needs of any specific client. Actual data will vary and may not be reflected here. These forecasts are subject to high levels of uncertainty that may affect actual performance. Accordingly, these forecasts should be viewed as merely representative of a broad range of possible outcomes. These forecasts are estimated, based on assumptions, and are subject to significant revision and may change materially as economic and market conditions change. Goldman Sachs has no obligation to provide updates or changes to these forecasts. Case studies and examples are for illustrative purposes only.

    This information discusses general market activity, industry or sector trends, or other broad-based economic, market or political conditions and should not be construed as research or investment advice. This material has been prepared by Goldman Sachs Asset Management and is not financial research nor a product of Goldman Sachs Global Investment Research (GIR). It was not prepared in compliance with applicable provisions of law designed to promote the independence of financial analysis and is not subject to a prohibition on trading following the distribution of financial research. The views and opinions expressed may differ from those of Goldman Sachs Global Investment Research or other departments or divisions of Goldman Sachs and its affiliates. Investors are urged to consult with their financial advisors before buying or selling any securities. This information may not be current and Goldman Sachs Asset Management has no obligation to provide any updates or changes.

    Environmental, Social, and Governance (“ESG”) strategies may take risks or eliminate exposures found in other strategies or broad market benchmarks that may cause performance to diverge from the performance of these other strategies or market benchmarks. ESG strategies will be subject to the risks associated with their underlying investments’ asset classes. Further, the demand within certain markets or sectors that an ESG strategy targets may not develop as forecasted or may develop more slowly than anticipated.

    Goldman Sachs Asset Management does not provide legal, tax or accounting advice and therefore expresses no view as to the legal, tax or accounting treatment of the information described herein or any related transaction, nor are we providing any assurance as to the adequacy or appropriateness of this information or our procedures for your purposes. This material is not a substitute for the professional advice or services of your own financial, tax, accounting and legal advisors.

    Although certain information has been obtained from sources believed to be reliable, we do not guarantee its accuracy, completeness or fairness. We have relied upon and assumed without independent verification, the accuracy and completeness of all information available from public sources.

    THIS MATERIAL DOES NOT CONSTITUTE AN OFFER OR SOLICITATION IN ANY JURISDICTION WHERE OR TO ANY PERSON TO WHOM IT WOULD BE UNAUTHORIZED OR UNLAWFUL TO DO SO.

    Past performance does not guarantee future results, which may vary. The value of investments and the income derived from investments will fluctuate and can go down as well as up. A loss of principal may occur.

    Date of first use: September 13, 2022. 290114-OTU-1662536.

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