Total fourth quarter indexed annuity sales for 2014 were $11.9 billion, up 4.0% when compared to the previous quarter, and up 3.5% when compared with the same period in 2013, according to the 70th edition of Wink’s Sales & Market Report.
The Wink report analyzes information presented by 49 indexed annuity carriers, representing 99.8% of indexed annuity production.
“As long as interest rates remain low, these new, nontraditional distributions will continue to force indexed annuity sales upward.” commented Sheryl J. Moore, president and CEO of both Moore Market Intelligence and Wink, Inc.
Sheryl Moore
“These new outlets helped indexed annuity sales reach a sixth consecutive record-setting year in 2014,” Moore added. “That topped last year’s record by more than 21%.”
[Scroll down for charts.]Noteworthy highlights for the 4th quarter, according to Wink, include:
- Allianz Life maintaining their position as the No. 1 carrier in indexed annuities, with a market share of 25.5%;
- American Equity Companies held on as the No. 2 carrier in the market;
- Security Benefit Life, Great American Insurance Group, and Athene USA followed-up in sales, rounding-out the top five;
- Allianz Life’s Allianz 222 Annuity was the No. 1 selling indexed annuity for the second consecutive quarter.
Guaranteed Lifetime Withdrawal Benefit (GLWB) utilization showed a decline, just as second quarter 2014 did. Proprietary GLWB data provided survey participants with specifics on rider elections and commencement by age.
Moore pointed-out, “GLWB election rates continue to seesaw each quarter. Anyone that thinks that the ‘income sale’ is king in this low interest rate environment needs to check out our data.”
For indexed life sales, 47 insurance carriers participated in Wink’s Sales & Market Report, representing 95.2% of production. Fourth quarter sales were $498.1 million.
When evaluating fourth quarter indexed life sales, results were up 33.6% when compared with the previous quarter, and up 23.6% when compared to the same period in 2013.
“Indexed life sales remain strong, despite recent regulatory controversy regarding illustrated rates,” Moore said. “In fact, this was a record-setting quarter for indexed life sales; beating-out the prior 4Q2012 record by nearly 13%.”
Items of interest in the indexed life market this quarter include:
- Pacific Life Companies maintaining its No. 1 position in indexed life sales, with a 14.6% market share;
- Aegon finished as second-ranked company in the market;
- National Life Group, Minnesota Life, and Accordia rounded-out the top five companies, respectively.
- Western Reserve Life Assurance Company of Ohio’s WRL Financial Foundation was the No. 1 selling indexed life insurance product for the fourth consecutive quarter.
- The average indexed UL target premium reported for the quarter was $7,749, an increase of nearly 9.0% from the prior quarter.
Click on image for full-size chart.
Click on image for full-size chart.
Indexed annuity sales break previous record: Wink Report via IFAwebnews.com .