Pleasant Hill, Iowa. May 23, 2014- Forty-five indexed annuity carriers participated in the 67th edition of Wink’s Sales & Market Report, representing 99.8% of indexed annuity production. Total first quarter sales were $10.9 billion. First quarter indexed annuity sales are down 5.8% when compared to the previous quarter, but production increased nearly 39.0% when compared with the same period last year. “2014 is off to a great start!” exclaimed Sheryl J. Moore, President and CEO of both Moore Market Intelligence and Wink, Inc. She added, “Typically fourth quarter sales are the big record-breaking quarter of the year, with agents trying to qualify for trips and incentives. As a result, first quarter sales are nearly always down compared to the previous quarter. After a huge 4th Quarter 2013, this quarter’s sales are only down slightly from last. I see great potential for record sales in 2014!”
Noteworthy highlights this quarter include Allianz Life maintaining their position as the #1 carrier in indexed annuities with a 25.6% market share. Security Benefit sustained their position as the second-ranked company in the market, while American Equity Companies, Great American Insurance Group, and Athene USA rounded-out the top five, respectively. Allianz Life’s Allianz 360 Annuity was the #1 selling indexed annuity for the second consecutive quarter.
Guaranteed Lifetime Withdrawal Benefit (GLWB) utilization declined for the third successive quarter, while experience data pointed to trends in rider elections and income commencement. Moore pointed-out, “It isn’t surprising to see another drop in GLWB election rates. Rates on indexed annuities have continued to improve. As a result, income sales persist in taking a backseat to accumulation sales.”
For indexed life sales, 51 insurance carriers participated in Wink’s Sales & Market Report, representing 95.3% of production. First quarter sales were $330 million. When evaluating first quarter indexed life sales, results were down 18.0% when compared with the previous quarter, and up nearly 4.0% as compared to the same period last year. Ms. Moore commented, “Indexed life sales are also off to great start in 2014!” She remarked, “Only one company in the top ten players experienced a decline in sales, when compared to this time last year. This is a surprising trend for the first quarter of the year, and I believe it is just a hint of the flurry of sales records that are ahead for this product line!”
Items of interest in the indexed life market this quarter included Pacific Life Companies holding-on to their #1 position in indexed life sales, with a 12.6% market share. Aegon took hold as the second-ranked company in the market; National Life Group, Minnesota Life, and Lincoln National Life 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 of the quarter. The average indexed UL target premium reported for the quarter was $9,063, a drop of nearly 13.0% from prior quarter.
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The staff of Moore Market Intelligence has combined experience of nearly three decades working with indexed insurance products. The firm provides services in speaking, research, training, product development, and marketing of indexed annuities and indexed life insurance. Their knowledge in product filing research and policy forms analysis, coupled with their unmatched resources in insurance distribution, give them the expertise to provide competitive intelligence that allows carriers to stay ahead of their competition.
Sheryl J. Moore is president and CEO of this specialized third-party market research firm and the guiding force behind the industry’s most comprehensive indexed life and indexed annuity due diligence tools, AnnuitySpecs and LifeSpecs distributed by Wink, Inc. Ms. Moore previously worked as market research analyst for top carriers in the indexed life and annuity industries. Her views on the direction on the indexed market are frequently heard in seminars and quoted by industry trade journals.
Ms. Moore is the author of the quarterly Wink’s Sales & Market Report. Serving as the insurance industry’s #1 resource of indexed insurance product sales since 1997, this report provides sales by product, company, crediting method, index, distribution, surrender charge period, and more.
Wink, Inc. is the company that distributes resources such as this sales report, along with the competitive intelligence tools AnnuitySpecs and LifeSpecs at www.LookToWink.com.