IA Sales Continue Breaking Records
March 13, 2014 by Wink
Noteworthy highlights this quarter include Allianz Life persisting in their position as the #1 carrier in indexed annuities with a 20.01% market share. Security Benefit Life maintained its position as the second-ranked company in the market, while Great American, American Equity, and Athene USA rounded out the top five, respectively. Allianz Life’s Allianz 360 Annuity took over as the #1 selling indexed annuity for the quarter.
Guaranteed Lifetime Withdrawal Benefit (GLWB) utilization declined for the second consecutive quarter, while additional experience data pointed to trends in rider elections and income commencement. Moore pointed-out, “It isn’t surprising to see GLWB elections down to 61.9% of eligible sales. Rates on indexed annuities are much more attractive than they have been in years, so salespeople are finally able to focus on accumulation sales again, as opposed to income sales.”
For indexed life sales, 50 insurance carriers participated in Wink’s Sales & Market Report, representing 95.4% of production. Fourth quarter sales were $430.4 million. When evaluating fourth quarter indexed life sales, results were up more than 31.0% when compared with the previous quarter, and down more than 2.0% as compared to the same period last year. Ms. Moore commented, “Fourth quarter sales propelled 2013 into another record breaking year! This was the fourth consecutive record-setting year for indexed life sales, topping last year’s record by 7.95%!” She remarked, “Outsiders won’t be able to stop their fascination with indexed life as a potential product line, considering sales are up at record levels again. In fact, we STILL have additional carriers that are slated to enter the market within the coming quarter!”
Facts worth noting in the indexed life market this quarter included Pacific Life Companies maintaining their #1 position in indexed life sales, with a 12.94% market share. AXA US moved to the second-ranked company in the market; National Life Group, Aegon, and Minnesota Life rounded-out the top five companies, respectively. AXA US’ Athena Indexed UL was the #1 selling indexed life insurance product for the 11th consecutive quarter. The average indexed UL target premium reported for the quarter was $10,358, an increase of nearly 55% from prior quarter.
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