At $11.3 billion, first quarter 2015 indexed annuity sales were down nearly 5% from the previous quarter but up nearly 5% compared with the same period last year, according to the Wink’s Sales & Market Report, which represents 49 carriers and 99.8% of indexed annuity production.
“Indexed annuity sales began the year with sales greater than any other first quarter has in the history of the product line,” said Sheryl J. Moore, president and CEO of Moore Market Intelligence and Wink, Inc., in a release.
Allianz Life maintained its sales leadership position with a market share of 20.3%. American Equity Companies was again the second-ranked carrier, while Security Benefit Life, Great American Insurance Group, and Athene USA again rounded out the top five. Allianz Life’s Allianz 222 Annuity was the best-selling contract for the third consecutive quarter.
Guaranteed Lifetime Withdrawal Benefit (GLWB) utilization declined for the second consecutive quarter, while experience data pointed to trends in rider elections and income commencement.
“Income sales continue to take a backseat to accumulation sales, due to recent development of hybrid indices that give distributors the ability to promote ‘uncapped’ crediting methods,” Moore said.
For indexed life sales, 47 insurance carriers participated in Wink’s Sales & Market Report, representing 95.3% of production. First quarter sales were $380.3 million. When evaluating first quarter indexed life sales, results were down nearly 24.0% when compared with the previous quarter, and up over 15.0% when compared to the same period last year. Ms. Moore stated, “Indexed life also produced a strong kick-off to 2015 sales as this quarter was greater than any other first quarter in the history of this product line. As we saw with the previous year sales, indexed life sales remain strong, despite the on-going regulatory controversy regarding illustrated rates.”
Items of interest in the indexed life market this quarter include Aegon obtaining the #1 position in indexed life sales, with a 13.7% market share. Pacific Life finished as second-ranked company in the market; National Life Group, Minnesota Life, and Nationwide 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 fifth consecutive quarter. The average indexed UL target premium reported for the quarter was $6,936, a decline of more than 10% from the prior quarter.
© 2015 Wink, Inc.