LIMRA: U.S. Individual Life Insurance New Premium Increases in First Half of 2017
"All major product lines experienced annualized premium growth during the first half of 2017," said
In the second quarter, total policy count fell 4 percent; policy count dropped 3 percent in the first half of the year.
Universal life (UL) new annualized premium increased 2 percent in the second quarter. In the first half of 2017, UL premium rose 4 percent.
Indexed UL (IUL) new annualized premium grew 8 percent in the second quarter, with almost half of IUL carriers reporting positive growth. Year-to-date, IUL premium rose 7 percent. IUL had the largest premium growth in second quarter. It represented 56 percent of UL premium and 21 percent of all individual life insurance premium.
After two quarters of increases, Lifetime Guarantee Universal Life (LTGUL) declined 11 percent in the second quarter. Just over half of LTGUL writers reported decreased sales in the second quarter. Year-to-date growth for LTGUL was only 1 percent.
LTGUL represents 20 percent of UL sales and 7 percent of total life premiums.
Variable universal life (VUL) new annualized premium increased 5 percent in the second quarter; and 1 percent year-to-date. After double-digit declines in 2016, VUL premium remain below 2015 levels.
VUL held a 5 percent market share of total individual life insurance in the first half of 2017.
Whole Life (WL) new annualized premium increased 2 percent in the second quarter. WL growth has slowed, compared to the growth seen in 2016. Year-to-date, WL rose 5 percent. Seven of the top 10 companies reported growth.
Year-to-date, WL premium represented 37 percent of the total life market, a market share level reached in 2016 when it became the highest in 20 years.
Term life insurance new premium grew 3 percent in the second quarter, compared with prior year. Seven of the top 10 companies reported growth. Term life market share was 21 percent in the first half of 2017.
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