Beacon: Income, Indexed Annuity Sales Increase In 3Q
"As we anticipated, these products continued to do well -- despite the quarter's low interest rate environment -- because of strong demand for guaranteed lifetime retirement income, be it the personal pension provided by income annuities or the lifetime withdrawal benefits offered by most indexed annuities," said
Year-to-date 2011 sales fell 1% to
Fixed annuity sales were
|Estimated Sales by Product Type (in $ millions)|
|Total|| Fixed Rate
| Fixed Rate
Each of third quarter's top five companies changed position from the prior quarter. Allianz regained sales leadership, moving Western National to second place. Both American Equity and Aviva moved up a notch to come in third and fourth, respectively. New York Life took fifth place. Third quarter results for the top five Study participants were as follows:
|Total Fixed Annuity Sales (in thousands)|
|Western National Life||1,342,074|
|New York Life||922,021|
Pacific Life was the new MVA sales leader. The other top companies in sales by product type were unchanged from the prior quarter: indexed – Allianz, fixed rate non-MVA – Western National, and; income – New York Life.
Each of third quarter's top five products were indexed annuities except for New York Life's Lifetime Income Annuity, which moved up one place to come in second. The Allianz MasterDex X remained the leading product. American Equity's Retirement Gold jumped two notches to come in third, followed by the company's Bonus Gold. Aviva rejoined the top five with Balanced Allocation Annuity 12 taking fifth place. The Study tracks the sales of some 600 fixed annuities.
|Rank||Company Name||Product Name||Product Type|
|2||New York Life||NYL Lifetime Income Annuity||Income|
|3||American Equity||Retirement Gold||Indexed|
|4||American Equity||Bonus Gold||Indexed|
|5||Aviva||Balanced Allocation Annuity 12||Indexed|
"We expect fourth quarter sales to decline due to seasonality as well as the difficult interest rate environment," Alexander concluded. "Beyond that, results aren't likely to improve much until rates rise. But, as always, a lot will depend on the decisions of the companies that issue and distribute fixed annuities."
The quarterly Study is the first and only source to track and analyze product-level fixed annuity sales on an ongoing basis. Providing timely market intelligence of the highest quality, it's designed to report what's moving in each channel and why.
1 MVAs or market value adjustments pay a premium on withdrawals when interest rates fall and reduce withdrawals when rates rise. Fixed rate non-MVAs are also known as book value annuities.
Judith Alexander847.864.5447 [email protected]
|Copyright:||2011 GlobeNewswire, Inc.|