The 4Q 2015 edition of Wink’s Sales & Market Report, released March 15 by the Pleasant Hill, Iowa-based third-party market research firm,reveals the top carriers, top products and some impressive cumulative sales figures for indexed annuities, fixed annuities and indexed life.
Allianz Life maintained its position as the No. 1 carrier in indexed annuities in the fourth quarter of 2015 with a 14.5% market share, according to the report, which represents 99.9% of indexed annuity production.
Allianz Life’s Allianz 222 Annuity was also the top-selling indexed annuity for the fourth consecutive quarter.
American Equity Companies held on to the No. 2 position in the report’s 4Q 2015 rankings for indexed annuities. Rounding out the top six carriers in the market are Nationwide, AIG, Great American Insurance Group, and Midland National Life.
Total 4Q indexed annuity sales were $15.5 billion, up more than 12% compared to the previous quarter, and up over 30% when compared with the same period in 2014.
“We not only hit a record this quarter, but also for the year,” says Sheryl J. Moore, President and CEO of both Moore Market Intelligence and Wink, Inc. “Indexed annuity sales for 2015 were $53 billion. That tops last year’s record by over 13 [percent].”
The figures align closely with data from the LIMRA Secure Retirement Institute’s fourth quarter U.S. Individual Annuities Sales Survey. The institute on March 16 also released its rankings of the Top 20 Annuity Sales Leaders for 2015, which can be viewed here. The Institute’s 2015 Fixed Annuity Breakout rankings can be viewed here.
The Secure Retirement Institute has observed that a number of companies who have traditionally been strong in the variable annuity market are now increasing their attention on the indexed annuity market.
“We expect indexed annuity products will retain their current exemption status under the proposed DOL fiduciary rule, and that more companies will enter or increase their focus on this market. As a result, indexed annuity sales will see double-digit growth in 2016,” said Todd Giesing, assistant research director, LIMRA Secure Retirement Institute.
Fixed Annuities
Total 4Q traditional fixed annuity sales were $2.0 billion; up over 20% compared to the previous quarter. Sixty-five fixed and multi-guaranteed annuity carriers participated in the Wink report.
MYGA sales for the fourth quarter were $6.7 billion; down over 6% when compared to the previous quarter.
Jackson National Life led traditional fixed sales with a 9.2% market share. The top traditional fixed annuity in overall sales was Knights of Columbus’ Flexible Premium Annuity.
The average fixed annuity premium was $84,933; a reduction of over 15% compared to the previous quarter. On the MYGA side, AIG was the No. 1 carrier, with a 16.6% market share. Forethought Life’s SecureFore 5 Fixed Annuity led overall MYGA sales in the fourth quarter. The average MYGA premium was $105.913; an increase of 2% as compared to the previous quarter.
Indexed Life
For indexed life sales, 46 insurance carriers participated in Wink’s Sales & Market Report, representing 94.9% of production. Fourth quarter sales were $541.5 million. When evaluating fourth quarter indexed life sales, results were up over 13% compared with the previous quarter, and up nearly 9% compared to the same period in 2014. “Like indexed annuities, indexed life hit a record for the quarter and the year,” Moore says. “It looks like AG49 pushed indexed life more than 4% over their prior record sales.”
Items of interest in the indexed life market this quarter include Transamerica maintaining the No. 1 carrier position in indexed life sales with a 14.1% market share, and Pacific Life continuing as the No. 2 carrier. National Life Group, Minnesota Life, and Lincoln National Life rounded out the top five companies, respectively.
Transamerica Premier Financial Foundation IUL was the top- selling indexed life insurance product for the eighth consecutive quarter. The average indexed UL target premium reported for the quarter was $8,640; an increase of more than 11% from the prior quarter.
Additional product lines will be added to Wink’s Sales & Market Report, via their quarterly sales survey in upcoming quarters. It is anticipated that whole life and term sales will be reported in 2016, while universal life sales will follow thereafter.
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