The Bucket

Brief or late-breaking items from Northwestern Mutual and Jackson National Life.

Northwestern Mutual now 114th on Fortune 500 

Strong financial and sales performance in 2012 helped Northwestern Mutual move up two positions on the FORTUNE 500 list to No. 114, the company said in a release.  

In 2012, Northwestern Mutual set a new annual record for the number of insurance policies purchased. Including life, disability income and long-term care, policies purchased were up 13% over 2011 and represented the most purchased in any year in company history.

The company’s combined 2012 new premium sales for life, disability income and long-term care insurance totaled $1.03 billion, up 11% over 2011. Annuity sales also increased 11% to a record $1.7 billion, the mutual insurer said.


Jackson reports 1Q 2013 sales and deposits of $6.2 billion

Strong sales of its Elite Access variable annuity helped Jackson National Life generate more than $6.2 billion in total sales and deposits during the first quarter of 2013, an increase of 6.3% from prior year quarter, the company said in a release.   

 “We continue to price all of our products conservatively to help Jackson maintain a strong capital position, which is in the best interests of all of our stakeholders,” said Mike Wells, president and CEO of the U.S.-based subsidiary of the UK’s Prudential plc.

Elite Access, which features alternative asset investment options and has no lifetime income rider option, recorded $835.6 million and Jackson sold $3.7 billion in other VA contracts (Perspective series) during the first quarter of 2013, compared to $11.5 million and $4.4 billion, respectively, in first quarter 2012.

Following market trends, Jackson’s fixed index annuities sales rose while traditional fixed annuity sales fell. FIA sales totaled $531.4 million, up from $391.7 million in first quarter 2012. First quarter 2013 fixed annuity sales were $223.3 million, down from $255.1 million during the same period in the prior year.

In the first quarter of 2013, Jackson issued $238.7 million in institutional products (guaranteed investment contracts, medium-term notes and funding agreements), up from $118.8 million in the first quarter of 2012.   

Deposits at Curian Capital LLC, Jackson’s asset management subsidiary, totaled $677.6 million during the first quarter. Assets under management in Curian’s core business increased to $9.6 billion as of March 31, 2013, up from $8.9 billion at year-end 2012.

National Planning Holdings, Inc., a Jackson-affiliated network of four independent broker-dealers, reported gross product sales of $5.1 billion during the first quarter of 2013, compared to $4.2 billion in the same period of 2012, yielding IFRS revenue of $225.8 million and $197.0 million in the first quarters of 2013 and 2012, respectively.

During full-year 2012, Jackson ranked:

  • First in total annuity sales, with a market share of 10.2%
  • Second in VA new sales, with a market share of 13.8%
  • First in VA net flows
  • Sixth in total VA assets
  • Sixth in FIA sales, with a market share of 5.1%   
  • Seventh in fixed-rate deferred annuity sales with a market share of 3.6%.

As of May 6, 2013, Jackson had the following ratings:

  • A+ (superior) —A.M. Best financial strength rating, the second-highest of 16 rating categories;
  • AA (very strong) —Standard & Poor’s insurer financial strength rating, the third-highest of 21 rating categories;
  • AA (very strong) —Fitch Ratings insurer financial strength rating, the third-highest of 19 rating categories;
  • A1 (good) —Moody’s Investors Service, Inc. insurance financial strength rating, the fifth-highest of 21 rating categories.