Indexed Life and Annuity Products Hit Sales Highs in 2011

Total 2011 indexed annuity sales set a record, but revenue dipped in the fourth quarter from the year-ago period, a new report reveals.

AnnuitySpecs.com, a unit of Moore Market Intelligence, Pleasant Hill, Iowa, published this finding in a summary of results from a new survey, Indexed Sales & Market Report. Forty-one indexed annuity carriers and 42 insurance carriers participated in the 58th edition of the report, representing 99% of indexed annuity and indexed life production.

Total fourth quarter indexed annuity sales were $8.2 billion, a dip of just under 5% from the third quarter and less than 1% from the year-ago period, the report finds. But indexed annuity sales for all of 2011 reached a $32.3 billion record high, an increase of less than 1% over the previous year’s total.

Sheryl Moore, president and CEO of Moore Market Intelligence, says the 2011 results represent the 4th consecutive record year for indexed annuity sales.

The report reveals that Allianz Life maintained its position as the top carrier in indexed annuities with a 17% market share. Aviva took the position as the second-ranked company in the market, while American Equity, Great American (GAFRI) and Midland National Life rounded-out the top five, respectively.

Fourth quarter indexed life sales were $321.1 million, an increase of nearly 28% over the previous quarter. As compared to the same period in 2010, sales were up over 45%. Total 2011 indexed life insurance sales were just short of $1 billion at $973.9 million in target premium, another sales record.

This quarter marked the fourth consecutive record quarter for indexed life insurance sales, in addition to the second consecutive record year for sales of the products, the report discloses. The 2011 sales record exceeds 2010’s record by nearly 40%. Moore says.

“The level of activity in the indexed life insurance market will not be waning soon,” says Moore. “Not only are many more companies on the verge of offering IUL, but when next year’s sales exceed $1 billion of target premium, everybody will doing it.”

AXA Equitable maintaining the number one position in indexed life with a 16% market share, the report finds. Aviva took the position as second-ranked company in the market, while Pacific Life Companies, AEGON Companies, and National Life Group rounded-out the top five companies, respectively.

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