PLEASANT HILL, Iowa – Total second quarter indexed annuity sales were $12.2 billion, up nearly 8% when compared to the previous quarter, and down over 2% when compared with the same period last year, according to the 72nd edition of Wink’s Sales & Market Report, released on Sept. 9.
“Indexed annuity continued their momentum in 2015 with sales greater than any other second quarter has in the history of the product line,” said Sheryl J. Moore, President and CEO of both Moore Market Intelligence and Wink, Inc. “There is no doubt that 2015 is going to be a record-setting year for indexed annuity sales,” Moore added.
Noteworthy highlights for the second quarter include Allianz Life as the No. 1 carrier in indexed annuities with a market share of 17.3%, and American Equity Companies as the No. 2 carrier. Great American Insurance Group, American General Life Companies and Athene USA round out the top five carriers in the market, respectively. Allianz Life’s Allianz 222 Annuity was the top-selling indexed annuity for the second consecutive quarter.
Guaranteed Lifetime Withdrawal Benefit (GLWB) utilization declined for the third consecutive quarter, making the highest one-quarter-drop since Wink began tracking the data. Still, the 6.5% decline in election leaves 58.7% of eligible contracts electing a GLWB. Experience data pointed to trends in rider elections and income commencement, which were consistent with expectations. “Again, I’m still not surprised to see another drop in GLWB election rates. Income sales continue to take a backseat to accumulation sales, due to recent development of hybrid indices that give distributors the ability to promote ‘uncapped’ crediting methods,” Moore said.
Fifty-two indexed annuity carriers participated in the 72nd edition of Wink’s Sales & Market Report, representing 99.8% of indexed annuity production.
Indexed Life sales see best 2Q ever
For indexed life, second quarter sales were $458.0 million, up more than 20% when compared with the previous quarter, and up nearly 28% when compared to the same period last year.
“Indexed life sales continued their 2015 momentum too; this quarter was greater than any other second quarter in the history of this product line. It will be interesting to see if the increased sales continue, amidst implementation of AG49 in the third quarter,” Moore said.
Items of interest in the indexed life market this quarter include Transamerica maintaining the No. 1-ranked company in indexed life sales, with a 15.3% market share. Pacific Life held the No. 2 position, while National Life Group, Minnesota Life, and Zurich American Life rounded out the top five companies, respectively.
￼Transamerica Premier Financial Foundation IUL (formerly known as Western Reserve Life Assurance Company of Ohio’s WRL Financial Foundation) was the No. 1 selling indexed life insurance product for the sixth consecutive quarter. The average indexed UL target premium reported for the quarter was $7,517, an increase more than 8% from the prior quarter.
46 insurance carriers participated in Wink’s Sales & Market Report, representing 95.3% of production.
Sheryl J. 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’s Sales & Market Report expanded to cover all fixed deferred annuity products in 2015.
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.