Third Quarter Indexed Annuity Sales Set A Record!
November 16, 2010 by Sheryl J. Moore
AnnuitySpecs.com Releases Third Quarter, 2010 Indexed Sales Results
Forty indexed annuity carriers participated in the 53rd edition of AnnuitySpecs.com’s Indexed Sales & Market Report, representing 99% of indexed annuity production. Total third quarter sales were $8.7 billion, up 16% from the same period last year. As compared to the previous quarter, sales were up nearly 5%. “It is going to be another record year for indexed annuity sales!” said Sheryl J. Moore, President and CEO of AnnuitySpecs.com. “Although insurance companies are challenged to offer annuities because of the prevailing low interest rate environment, this environment has also increased the attractiveness of these products beyond anything we’ve ever seen before. With CDs averaging 0.56% a year and fixed annuities hovering at 3.14%, I think we can count on another record quarter to close-out the year.”
Worth noting this quarter is the fact that Allianz Life maintained their position as the #1 carrier in the market with a 21% market share. Aviva also maintained their position as second-ranked company in the market, while American Equity, Lincoln National and ING rounded-out the top five, respectively. Allianz Life’s MasterDex X is the #1 selling indexed annuity for the sixth consecutive quarter. The average weighted commission paid to the indexed annuity agent reached an all-time low, 6.50%.
For indexed life sales, 37 insurance carriers in the market participated in the AnnuitySpecs.com’s Indexed Sales & Market Report, representing 99% of production. Third quarter sales were $165.6 million, a drop of less than 0.2% from the previous quarter and an increase of nearly 27% over the same period in 2009. Moore remarked, “This quarter six new companies decided to delve into the indexed life market- how exciting!” She went on to comment, “We still have many more companies in the research and development stage for indexed life. It will definitely be interesting to see where sales are a year from now, once all of these new players get up-and-running!”
Items of interest in the indexed life market this quarter include Pacific Life overthrowing Aviva from their #1 position in the market. Aviva’s reign over IUL has been unchallenged since they first took hold of the top position 3Q2001 (with the exception of one brief quarter at the close of 2007, when American General Life Companies briefly took hold of the position). Pac Life captured the top ranking for the first time with a 16% market share. Aviva, Minnesota Life, AEGON Companies and National Life Group rounded out the top five, respectively. Pacific Life’s Pacific Indexed Accumulator III remained the top-selling indexed life product for the third quarter. The average IUL target premium increased 13% over last quarter to a healthy $7,978.
For more information go to www.IndexedAnnuityNerd.com.
The staff at AnnuitySpecs.com, and LifeSpecs.com have over a decade of experience working with indexed products. They provide services in speaking, research, training, product development, and marketing of indexed products. Their knowledge in product filing research and policy forms analysis gives them the expertise to provide competitive intelligence that allows carriers to stay ahead of their competitors.
Sheryl J. Moore is president and CEO of this specialized third-party market research firm and the guiding force behind the industry’s most comprehensive indexed life and indexed annuity due diligence tools, AnnuitySpecs.com and LifeSpecs.com. Ms. Moore previously worked as market research analyst for top carriers in the indexed life and annuity industries. Her views on the direction on the indexed market are frequently heard in seminars and quoted by industry trade journals. She is the author of the quarterly AnnuitySpecs.com’s Indexed Sales & Market Report.
November 15, 2010
Pleasant Hill, IA