Jackson National Life leads the way in total annuities sales through the first half of 2013, with $11.68 billion in sales. Lincoln Financial Group ($8.29 billion), AIG ($7.17 billion), MetLife ($7.02 billion) and Prudential Annuities ($6.86 billion) round out the top five.
While no other insurer tops the mark in total sales, Jackson National’s variable annuity sales alone reach more than $10 billion in sales ($10.28 billion), while New York Life ($2.67 billion), Security Benefit Life ($2.54 billion) and Allianz Life of North America ($2.43 billion) led in terms of fixed annuity sales.
As an industry, total annuity sales were $56.5 billion in the second quarter of 2013 — 9 percent higher than the first quarter of 2013 ($51.7 billion) but one percent below 2012 results for the same period, according to LIMRA's second quarter 2013 U.S. Individual Annuities Sales survey, which represents data from 95 percent of the market.
“This quarter’s results are encouraging for the annuity industry — every product line improved from the first quarter of 2013,” said Joseph Montminy, AVP, LIMRA Annuity Research. “Observing the economic improvements, including interest rate increases, we believe variable annuity sales have stabilized while fixed annuity sales will continue to improve for the remainder of the year.”
In the first six months of 2013, total annuity sales were down 4 percent year-over-year to $108.2 billion. Variable annuities account for $73.7 billion of that; fixed annuities account for the remaining $34.5 billion.
Reflecting overall annuity fluxuations, variable annuity (VA) sales were one percent lower in Q2 2013 when compared to Q2 2012, totaling $38.2 billion. However, VA sales rebounded from the prior quarter, up 8 percent. Year-to-date (YTD), VA sales totaled $73.7 billion, a 3-percent decline from the first half of 2012.
Deferred income annuities (DIA) surpassed $0.5 billion for the first time, reaching $535 million in the second quarter of 2013, 155 percent higher than in the second quarter of 2012. Also, compared to last year, year-to-date DIA sales grew 151 percent to nearly $1 billion. DIA sales are on pace to reach $2 billion by the end of the year, doubling full-year results from 2012.
Fixed annuity sales reached $18.3 billion in the second quarter, down 1 percent compared to the same period in 2012, yet higher than the first three months of the year. In the first half of 2013, fixed annuities fell 6 percent, totaling $34.5 billion.
For the first time ever, quarterly indexed annuities topped $9 billion in Q2 2013.
Year-over-year, indexed annuities sales were up 5 percent in the second quarter. Year-to-date, indexed annuities improved 1 percent, to reach $16.8 billion. Bank market share of indexed annuities was 12 percent in the second quarter; triple its market share of four percent in 2008.
Guaranteed lifetime withdraw benefit (GLWB) riders continue to help propel indexed annuity sales. Indexed GLB rider election rates also hit an all-time high of 76 percent in the second quarter of 2013.
Fixed-rate deferred annuity sales declined 15 percent in the second quarter to $5.5 billion. YTD, fixed deferred are 20 percent lower than a year ago, totaling $10.7 billion.
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