[November 27, 2012]

DTCC Issues Third Quarter 2012 Annuity Market Activity Report; Data Reveals Relatively Steady Inflows and Declining Out Flows

The Depository Trust & Clearing Corporation (DTCC) Insurance and Retirement Services (I&RS) has released its newest findings on activity and trends in the market for annuity products in its third quarter report. The information, obtained from the millions of transactions processed by and entrusted to I&RS, is available through its award-winning online information service, Analytic Reporting for Annuities, a service offering of NSCC, a DTCC subsidiary.

The full 16 page report including data and charts can be found here.

Q3 highlights include:

• Compared to Q2 2012, inflows in the third quarter were down $4.4 billion and out flows were down $6.7 billion, resulting in an increase in net cash flows of 39 percent, or $2.2 billion.
• The data reflects a trend of a narrow range of inflows and declining outflows, resulting in greater net flows.
• Net cash flows into non-qualified account types turned positive for the first time in 2012.

In September:

• Annuity inflows declined 4.8%, to $7.4 billion fom $7.7 billion in August.
• Out flows declined over 10 percent to $5.7 billion from over $6.3 billion in August.
• 58 percent of all inflows going into qualified account types and 42 percent going to non-qualified account types in September.

Analytic Reporting for Annuities is an online information solution containing aggregated data from transactions processed by NSCC'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 Members 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.

DTCC has added a page to its web site at http://www.dtcc.com/analytics for more information about the Analytic Reporting Service.

About DTCC

The Depository Trust & Clearing Corporation (DTCC), through its subsidiaries, provides clearing, settlement and information services for equities, corporate and municipal bonds, government and mortgage-backed securities, money market instruments and over-the-counter derivatives. In addition, DTCC is a leading processor of mutual funds and insurance transactions, linking funds and carriers with their distribution networks. DTCC's depository provides custody and asset servicing for 3.6 million securities issues from the United States and 121 other countries and territories, valued at almost $34 trillion. In 2010, DTCC settled more than $1.66 quadrillion in securities transactions. Insurance & Retirement Services (I&RS) is the DTCC division that processes annuity and insurance transactions. 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.

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.

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