Indexed Annuities Up 16% in 2Q
August 17, 2011 by Sheryl J. Moore
August 16, 2011
Thirty-nine indexed annuity carriers participated in the 56th edition of AnnuitySpecs.com’s Indexed Sales & Market Report, representing 98% of indexed annuity production. Total second quarter sales were $8.2 billion, up nearly 16% from the previous quarter. As compared to the same period last year, sales were down just over 1%. “Not surprising that this was one of the top-five best-selling quarters for indexed annuity sales,” said Sheryl J. Moore, President and CEO of AnnuitySpecs.com. “The rates on indexed annuities are miserable right now, just as they are with every other type of fixed money instrument. However, the retirement income story that is told by the indexed annuity continues to be a compelling testimony to the power of guaranteed lifetime income.”
Worth noting this quarter was the fact that Allianz Life maintained their position as the #1 carrier in the market with a 21% market share. Aviva took the position as the second-ranked company in the market, while American Equity, Great American (GAFRI) and North American rounded-out the top five, respectively. Allianz Life’s MasterDex X was the #1 selling indexed annuity for the ninth consecutive quarter.
For indexed life sales, 37 insurance carriers in the market participated in the AnnuitySpecs.com’s Indexed Sales & Market Report, representing over 99% of production. Second quarter sales were $224,1 million, an increase of over 17% over the previous quarter. As compared to the same period in 2010, sales were up over 35%. Moore remarked, “I have been lecturing about the growing popularity of indexed life for 12 years now. It is nice to see that I am finally catching the attention of folks outside of the indexed life market!” She went on to comment, “I have several companies developing indexed UL, despite the fact that they had previously ordered their distribution not to sell indexed products. It hard for these companies to deny the consumer’s demand for indexed life when it is hitting record-setting sales levels every other quarter.”
Items of interest in the indexed life market this quarter include Aviva recapturing the #1 position in indexed life with a 13% market share. Minnesota Life took the position as second-ranked company in the market, while AXA Equitable, Pacific Life Companies, and AEGON Companies rounded-out the top five, respectively. AXA Equitable’s Athena Indexed UL took the position as the top-selling indexed life product for the first time this quarter.
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 insurance products. They provide services in speaking, research, training, product development, and marketing of indexed life and indexed annuities. 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 competition.
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.