IUL to the Rescue of Low UL Sales
March 21, 2018 by Cyril Tuohy
Indexed universal life (IUL) sales kept overall life insurance sales in the black last year, and also appear to be subsidizing insurers with low fixed UL sales.
Nine of the top 10 IUL sellers had sales increases in the fourth quarter last year compared with the third quarter, according to Wink’s Sales & Market Report.
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Article excerpt:
“That’s huge,” said Sheryl J. Moore, president and CEO of Moore Market Intelligence and Wink Inc., publisher of Wink’s Sales & Market Report.
“Only three companies out of the top 25 sellers had (fourth quarter) sales declines so it’s been a great overall quarter for indexed life, but it can’t remain this way forever,” Moore said.
In 4Q IUL Rises, Fixed UL Falls
For the moment, IUL sellers can enjoy their day in the sun.
Fourth-quarter 2017 IUL sales rose 20 percent to $575 million compared with the third quarter, Wink reported.
Fourth-quarter IUL sales rose 7.6 percent over the fourth quarter of 2016.
IUL sales in 2017 rose 6 percent to $1.9 billion over 2016.
The nation’s top IUL seller, Pacific Life, saw fourth-quarter sales rise 49 percent compared with the third quarter, while fourth-quarter sales rose 64 percent over the fourth quarter in 2016, Wink reported.
Pacific Life IUL 2017 sales rose 58 percent compared with 2016, Wink reported.
Meanwhile, fourth-quarter 2017 fixed UL sales fell 11 percent to $474 million compared with the third quarter, Wink also reported.
Annual 2017 fixed UL sales were $2 billion.
