IA Sales Break Second Consecutive Sales Record
November 19, 2013 by Press Release
Pleasant Hill, Iowa. November 15, 2013. Forty-two indexed annuity carriers participated in the 65th edition of Wink’s Sales & Market Report, representing 98.4% of indexed annuity production. Total third quarter sales were $10.0 billion. In reviewing third quarter indexed annuity sales, production was up more than 9.0% when compared to the previous quarter, and up more than 15.0% when compared with the same period last year. “It seems I’ve been preaching about how valuable these products are for 15 years, and people are finally starting to get the memo!,” exclaimed Sheryl J. Moore, President and CEO of both Moore Market Intelligence and Wink, Inc. She added, “Many companies made positive changes to their products in the third quarter, and we had a number of fire sales being offered as well. If you think this quarter was strong, wait until the close of 2013.”
Noteworthy highlights this quarter include Allianz Life persisting in their position as the #1 carrier in indexed annuities with a 12.91% market share. Security Benefit Life and American Equity also maintained their positions as the second and third-ranked companies in the market; Great American and Aviva round out the top five, respectively. Security Benefit Life’s Total Value Annuity was the #1 selling indexed annuity for the fifth consecutive quarter.
For indexed life sales, 48 insurance carriers participated in Wink’s Sales & Market Report, representing over 95.1% of production. Third quarter sales were $328.0 million. When evaluating third quarter indexed life sales, results were down more than 2.0% when compared with the previous quarter, and up more than 1.0% as compared to the same period last year. Ms. Moore commented, “It is amazing that indexed life sales are only down slightly; three of the more prominent companies in this market had significant declines this quarter. ”She remarked, “However, outsiders aren’t going to stop their fascination with indexed life as a potential product line, with year-to-date sales being up more than 13%. In fact, we have additional carriers that are slated to enter the market within the coming quarter.”
Facts worth noting in the indexed life market this quarter included Pacific Life Companies maintaining their #1 position in indexed life sales, with a 13.51% market share. Aegon moved-up to become the second-ranked company in the market, while AXA Equitable, National Life Group (LSW), and Minnesota Life rounded-out the top five companies, respectively. AXA Equitable’s Athena Indexed UL was the #1 selling indexed life insurance product for the 10th consecutive quarter. The average indexed UL target premium reported for the quarter was $6,684, an increase of nearly 16% from prior quarter.
