Pleasant Hill, Iowa. June 7, 2013 - Forty-one indexed annuity carriers participated in the 63rd edition of Wink’s Sales & Market Report, representing 98.2% of indexed annuity production. Total first quarter sales were $7.8 billion. In reviewing first quarter indexed annuity sales, production was 8.2% lower than last quarter and 2.7% less than the same period last year. “There was a sizable decline in indexed annuity sales this quarter.” proclaimed Sheryl J. Moore, President and CEO of both Moore Market Intelligence and Wink, Inc. She added, “However, I am going to restate what I always state of first quarter sales- they are always going to be down as compared to the previous quarter. The fourth quarter is always the big record-breaking quarter of the year, with agents trying to qualify for trips and incentives.”
Worth noting this quarter was the fact that Allianz Life maintained their position as the #1 carrier in indexed annuities with a 14.6% market share. Security Benefit Life maintained their position as the second-ranked company in the market; while American Equity, Aviva, and Jackson National Life rounded-out the top five, respectively. Security Benefit Life’s Total Value Annuity was the #1 selling indexed annuity for the third consecutive quarter.
Guaranteed Lifetime Withdrawal Benefit (GLWB) declined slightly in the first quarter, while additional experience data pointed to trends in rider elections and income commencement. Moore pointed-out, “As one might expect, the greatest percentage of indexed annuity purchasers that elected GLWBs continue to fall in the same age range as the typical indexed annuity purchaser: ages 60 – 69. This quarter showed an improved trend in that the greatest percentage of indexed annuity GLWB purchasers are commencing their lifetime income under the benefit between ages 70 – 79.”
For indexed life sales, 46 insurance carriers participated in Wink’s Sales & Market Report, representing over 95.5% of production. First quarter sales were $351.2 million. When evaluating first quarter indexed life sales, results were 19.5% less than last quarter, and up 37.2% over the same period last year. Ms. Moore remarked, “Yet another strong quarter for indexed life sales.” She went on to comment, “We have a couple of new companies that have just entered the indexed life market, and yet a few others that are about to enter the IUL space. Once these companies’ distributions feel comfortable with their product, I anticipate that sales of IUL will increase exponentially.”
Items of interest in the indexed life market this quarter included AEGON Companies moving into the #1 position in indexed life sales, with a 12.0% market share. Pacific Life maintained their position as the second-ranked company in the market, while National Western, AXA Equitable, and National Life Group (LSW) rounded-out the top five companies, respectively. AXA Equitable’s Athena Indexed UL was the #1 selling indexed life insurance product for the eighth consecutive quarter. The average indexed UL target premium reported for the quarter was $11,508, an increase of nearly 1% from the 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.com and LifeSpecs.com. 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. The report is formerly known as AnnuitySpecs.com’s Indexed Sales & Market Report, which has been rebranded under the company name Wink, Inc. Wink, Inc. will be the company name that distributes resources such as this sales report, AnnuitySpecs.com, and LifeSpecs.com.
Wink, Inc has the same ownership, people, great service, and unparalleled competitive intelligence, all rebranded under the new company name.