Insurance Report April 2023—Segregated Funds in Q1 2023

After experiencing a significant uptick in sales in 2021, the segregated fund market reverted to sales volumes in line with recent history as experienced in 2022. A heightened sense of mortality during the pandemic, coupled with booming markets, resulted in inflow levels for 2021 not seen since before the financial crisis, a time when Guaranteed Withdrawal Benefit (GWB) policies accounted for a majority of new business. In recent years, the net flows dynamics of segregated funds included, with almost no exceptions, net outflows from GWB policies and positive sales for traditional policies, generally with guarantee levels of 75/75 or 75/100 (for maturity and death benefits, respectively).