Des Moines annuity firms see 2014 sales growth
March 17, 2015 by Matthew Patane, mpatane@dmreg.com
Insurance companies with operations in the Des Moines metro saw their annuity sales grow in 2014, a new report shows.
The indexed annuities industry had $46.9 billion in sales for all of last year, according to the Wink’s Sales & Market Report. That’s up from $38.7 billion in 2013, said Wink, a Pleasant Hill insurance research firm.
The sale of indexed annuities plays a large role in Des Moines insurance sector. Companies in Des Moines selling the insurance product include American Equity Insurance Co., Athene USA, Fidelity & Guaranty Life, and Voya Financial, among others.
About 35 percent of 2014’s total annuity sales — $16.5 billion — came from the 11 firms that either have headquarters or offices in the metro.
Indexed annuities are popular among retirees because they pay out a steady stream of cash over time after an initial investment. Annuity sales have risen in recent years as more baby boomers head into retirement and the stock market rebounds from the recession, experts have said.
The insurance industry employs about 24,000 people in the Des Moines metro.
Eight of Des Moines’ 11 companies saw their annuity sales grow in 2014, according to the report.
West Des Moines-based American Equity ranked third on the Wink list for highest sales, reporting about $4.2 billion in sales, up 3.2 percent from 2013.
Athene USA, also based in West Des Moines, ranked fifth with $2.5 billion in sales, down 9.8 percent from a year prior.
Minneapolis-based Allianz Life led 2014’s sales of indexed annuities, reporting $12.7 billion in sales.
Indexed annuity sales in Des Moines
Here are the index annuity companies with headquarters or offices in Des Moines and their 2014 sales.
American Equity: $4.15 billion
Athene USA: $2.5 billion
Midland National Life (Sammons): $1.8 billion
Fidelity & Guaranty Life: $1.8 billion
EquiTrust: $1.6 billion
Symetra Financial: $1.6 billion
Voya Financial: $1.54 billion
North American Co. (Sammons): $953 million
Nationwide: $443.9 million
Farm Bureau Life: $87.7 million
Principal Life (estimated): $59.6 million
Source: Wink’s Sales & Market Report