2009 Indexed Annuity Sales Set Record : 4th Quarter 2009
February 25, 2010 by Sheryl J. Moore
This is a preliminary release for fourth quarter sales; one company in the market has yet to release their earnings. Updated sales data and figures will be made available to the press after February 25, 2010.
Forty-four indexed annuity carriers participated in the 50th edition of AnnuitySpecs.com’s Indexed Sales & Market Report (formerly known as the Advantage Index Sales & Market Report), representing 99% of indexed annuity production. Total fourth quarter sales were $7.0 billion, down 2.7% from the same period last year. As compared to the previous quarter, sales were down 6.7%. “The past two quarters’ sales have been the strongest the indexed annuity industry has ever seen. It is natural to rebound to a normal sales level after such record highs.” said Sheryl J. Moore, President and CEO of AnnuitySpecs.com. “The big story this quarter is that sales of indexed annuities exceeded $30 billion in 2009, setting an all-time record. That blows our previous 2007 annual sales record by more than 10%!”
Worth noting this quarter is the fact that Allianz Life maintained their position as the #1 carrier in the market and also took the title for total 2009 sales. Aviva climbed back to be the second-ranked company in the market, while American Equity, Jackson National and ING rounded-out the top five, respectively.
Allianz Life’s MasterDex X is the #1 selling indexed annuity (IA) for the third consecutive quarter.
Jackson National Life dominated sales of IAs in the bank and wirehouse distributions for the quarter.
For indexed life sales, 33 carriers in the market participated in the AnnuitySpecs.com’s Indexed Sales & Market Report, representing 100% of production. Fourth quarter sales were $151.3 million, an increase of nearly 16% from the previous quarter and a reduction of 4.0% from the same period in 2008. “A third of the companies in the indexed life market experienced greater than 50% growth since this period last year; what a great story!,” said Moore. She went on to comment, “The IUL market is going to become increasingly competitive now that so many of these new entrants’ distributions are comfortable with the product. It will be exciting to see what 2010 has in store for the market.”
Items of interest in the indexed life market this quarter include Aviva’s firm hold on their #1 position, with a 22% market share. Pacific Life, National Life Group, Minnesota Life, and American General Companies rounded out the top five respectively. Pacific Life’s Indexed Accumulator III held on to its rank as the #1 indexed life product for the fifth consecutive quarter. Nearly 77% of sales utilized an annual point-to-point crediting method, and the average target premium paid was $7,596.