Third quarter indexed annuity sales jump 11%

Third quarter indexed annuity sales were up 11.3% from a year ago, but down from record sales levels in the second quarter of 2009.
JAN 05, 2010
Third quarter indexed annuity sales were up 11.3% from a year ago, but down from record sales levels in the second quarter of 2009. According to data from AnnuitySpecs.com, sales of indexed annuities hit $7.5 billion. That's off nearly 10% from the record level of $8.3 billion in the second quarter of the year. The quarter saw a switch in sales leaders, as Aviva USA Corp. moved into the fifth place among the top five indexed annuities sellers. Allianz Life Insurance Co. of North America reclaimed its position as the top insurer in that market — a position the company hasn't held since the fourth quarter of 2007. American Equity was second among the indexed annuity carriers, while Lincoln National Corp. and Jackson National Life Insurance Co. took third and fourth places, respectively. Allianz's MasterDex X was the top selling indexed annuity in the market again, repeating its second quarter performance. Indexed life insurance sales fell slightly in the third quarter, down to $130.8 million, reflecting a decline of 1.3% from the second quarter and a 0.9% increase from the comparable period in 2008. Sheryl J. Moore, president and chief executive of AnnuitySpecs.com, forecasted growing interest from carriers in the indexed universal life insurance space. Ms. Moore is also president of the Advantage Group Associates Inc., a research firm. “We start getting interest when there's been a decline in equity markets, and people start looking for guarantees,” she said. “[Indexed universal life] becomes a logical choice for companies that have had a decline in [variable universal life] sales. IUL is a natural beneficiary of that situation because VUL sales might go down, but IUL sales will probably increase if the market is declining.” In that product line, Aviva maintained its footing as the number- one seller of indexed life, with a 20% market share. Meanwhile, Pacific Life Insurance Co. held its position as the manufacturer of the top indexed life insurance product — the Indexed Accumulator III — for the fourth consecutive quarter.

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