Forty-five fixed indexed annuity carriers reported sales of $8.7 billion in the second quarter of 2012, up more than 8% from the previous quarter and 6% from the same period in 2011, according to the 60th edition of AnnuitySpecs.com’s Indexed Sales and Market Report.
“This quarter’s sales were only 0.60% lower than third quarter 2010’s record-setting indexed annuity sales levels,” said Sheryl J. Moore, president and CEO of Moore Market Intelligence, owner of AnnuitySpecs.com. “That being said, second quarter was a period of flux for indexed annuities; nine different companies made changes to their products on 14 different occasions during this quarter.”
Allianz Life maintained its lead position with a 16% market share. Aviva again was second, and American Equity, Security Benefit Life, and Great American (GAFRI) rounded-out the top five.
After less than one year in the FIA market, Security Benefit Life had the top-selling indexed annuity for the quarter, the Secure Income Annuity. Despite declining fixed interest rates and a transition to income sales, Guaranteed Lifetime Withdrawal Benefit (GLWB) elections dropped this quarter to 53% of total indexed annuity sales. The riders are increasingly being utilized to guarantee income; however, the bulk of the changes to annuity products in the second quarter reduced the relative competitiveness of these annuity benefits.
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