Filed Under:Annuities, Fixed Indexed

Indexed annuity sales grow 15.4 percent in 2Q 2014

Forty-five indexed annuity carriers participated in the 68th edition of Wink’s Sales & Market Report, representing 99.8 percent of indexed annuity production. Total second quarter sales were $12.6 billion. 

Second quarter indexed annuity sales were up 15.43 percent when compared to the previous quarter, and up 36.54 when compared with the same period last year. 

Second quarter sales set a record and toppled the prior fourth quarter, 2013 sales record by almost 9 percent (8.85 percent).

Noteworthy highlights this quarter include Allianz Life maintaining their position as the #1 carrier in indexed annuities, expanding their market share to 30.38 percent. Security Benefit, American Equity Companies, Great American Insurance Group, and Athene USA all sustained their positions, rounding-out the top five. Allianz Life’s Allianz 360 Annuity was the #1 selling indexed annuity for the third consecutive quarter.

Guaranteed Lifetime Withdrawal Benefit (GLWB) utilization increased for the first time since the second quarter of 2013, while experience data pointed to trends in rider elections and income commencement. 

Although there was a slight uptick in GLWB election rates, only a little more than half of all indexed annuity sales are focused on income as opposed to accumulation.

For indexed life sales, 47 insurance carriers participated in Wink’s Sales & Market Report, representing 95.3 percent of production. Second quarter sales were $366.6 million. 

When evaluating second quarter indexed life sales, results were up 11.02 percent when compared with the previous quarter, and up 14.4 percent when compared to the same period last year. 

Indexed life sales continue to be strong. The second quarter marked the third-largest quarter for indexed life in the history of the product line. While some carriers are attempting to build IUL-like VUL products, the companies reporting sales to us are proving that indexed life is a viable and successful avenue for growing life insurance sales.

Items of interest in the indexed life market this quarter include Pacific Life Companies maintaining their #1 position in indexed life sales, with a 12.1 percent market share. 

Aegon held-on as the second-ranked company in the market; National Life Group, Midland National Life, and Minnesota Life rounded-out the top five companies, respectively. 

Western Reserve Life Assurance Company of Ohio’s WRL Financial Foundation was the #1 selling indexed life insurance product for the second consecutive quarter. 

The average indexed UL target premium reported for the quarter was $6,367, a drop of nearly 30 percent from the prior quarter. 

Related

Industry-wide annuity sales up 13 percent year over year

IRI released first-quarter 2014 annuity sales report: growth was supported by continued high levels of fixed annuity sales.

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