Indexed annuity sales shot up 14.28% in the third quarter of 2014 compared to the same period a year ago, according to the latest data from the 69th edition of Wink’s Sales & Market Report.
Total third-quarter indexed annuity sales totaled $11.4 billion, which is actually a decrease of 8.58% from the second quarter, but sales remain on track for a huge 2014, according to Sheryl J. Moore, president and CEO of both Moore Market Intelligence and Wink, Inc.
“Third quarter year-to-date sales of indexed annuities are greater than they have been in any full year with the exception of 2013’s record-setting sales,” Moore said. “This market is easily on-target to do over $45 billion in sales for 2014.”
• Editor’s note: for additional 3rd quarter sales data, see the LIMRA Secure Retirement Institute report on page 2 of this article.
Noteworthy highlights for the quarter include Allianz Life maintaining its position as the No. 1 carrier in indexed annuities, with a market share of 26.8%. American Equity Companies recaptured its prior ranking as the No. 2 carrier in the market; Security Benefit Life, Great American Insurance Group, and Athene USA round out the top five. Allianz Life’s Allianz 222 Annuity was the No. 1-selling indexed annuity for the quarter.
Forty-seven indexed annuity carriers participated in the 69th edition of Wink’s Sales & Market Report, representing 99.8% of indexed annuity production.
For indexed life sales, 47 insurance carriers also participated in Wink’s Sales & Market Report, representing 95.2% of production. Third quarter sales were $372.8 million. When evaluating third quarter indexed life sales, results were up 4.46% compared with the previous quarter, and up 18.73% compared to the same period last year. “Indexed life sales are likely to finish out the year stronger than any prior year with the exception of 2012’s record-setting sales. As the matter of indexed life illustrated rates gets ‘hammered out,’ we’re going to continue seeing more companies entering this now-mainstream product line,” Moore said.
Items of interest in the indexed life market this quarter include Pacific Life Companies maintaining its No. 1 position in indexed life sales, with an 11.61% market share. Aegon held on as the second-ranked company in the market; National Life Group, Minnesota Life, and Zurich American Life rounded out the top five companies, respectively. Western Reserve Life Assurance Company of Ohio’s WRL Financial Foundation was the No. 1-selling indexed life insurance product for the third consecutive quarter.
The average indexed UL target premium reported for the quarter was $7,119, an increase of nearly 12% from the prior quarter.
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Next page: LIMRA reports total annuity sales fall 2% in third quarter
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