Sheryl J Moore

August 15, 2010

Forty-three indexed annuity carriers participated in the 52nd edition of AnnuitySpecs.com’s Indexed Sales & Market Report, representing 99% of indexed annuity production. Total second quarter sales were $8.3 billion, down 0.1% from the same period last year. As compared to the previous quarter, sales were up over 22.8%. “This is definitely the year of the indexed annuity!” said Sheryl J. Moore, President and CEO of AnnuitySpecs.com. “With CD rates at 1% and fixed annuities crediting a mere 3.65% on average, it is no wonder that this was the second-highest quarter in terms of indexed annuity sales. It is going to be another record year!”

Worth noting this quarter is the fact that Allianz Life maintained their position as the #1 carrier in the market with a 19% market share. Aviva also maintained their position as second-ranked company in the market, while American Equity, Lincoln National and North American Company rounded-out the top five, respectively. Allianz Life’s MasterDex X is the #1 selling indexed annuity (IA) for the fifth consecutive quarter. Jackson National Life dominated sales of IAs in the wirehouse distribution for the third consecutive quarter.

For indexed life sales, 33 carriers in the market participated in the AnnuitySpecs.com’s Indexed Sales & Market Report, representing 100% of production. Second quarter sales were $165.8 million, an increase of more than 16% from the previous quarter and and 25% over the same period in 2009. Moore remarked, “It is not surprising to see another record quarter for indexed life sales.” She went on to comment, “This quarter’s sales are reflective of increased consumer interest in these products, as a result of record-low interest rates on interest-sensitive insurance products. The great news is that we have never had a greater level of interest in the indexed life market from highly-rated insurance companies. Indexed life is finally transitioning from a niche product to mainstream insurance because of this growing demand.”

Items of interest in the indexed life market this quarter include Aviva’s firm hold on their #1 position, with a 18% market share. Pacific Life, Penn Mutual, AEGON Companies and Minnesota Life rounded out the top five, respectively. Pacific Life’s Pacific Indexed Accumulator III recaptured the ranking of #1 indexed life product for the first quarter. Over 80% of sales utilized an annual point-to-point crediting method, and the average target premium paid was $7,036.

For more information go to www.IndexedAnnuityNerd.com 

The staff at AnnuitySpecs.com, and LifeSpecs.com have over a decade of experience working with indexed products. They provide services in speaking, research, training, product development, and marketing of indexed products. Their knowledge in product filing research and policy forms analysis gives them the expertise to provide competitive intelligence that allows carriers to stay ahead of their competitors.

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. She is the author of the quarterly AnnuitySpecs.com’s Indexed Sales & Market Report.

Originally Posted at InsuranceNewsNet on August 15, 2010 by Sheryl J. Moore.