Equity index annuities didnt ride the waves in the first quarter of sales for 2001, but neither did they slide down the valley.
According to a new report out from The Advantage Group, a Maryland Heights, Mo., EIA tracking service, EIA sales for the first quarter were flat, coming in at nearly $1.258 billion, about the same as in the fourth quarter of 2000.
Average EIA premium for the period was $33,116, about the same as the $33,452 reported by the participating companies for traditional fixed annuity average premium, adds Jack Marrion, Advantage Group owner.
Compared to the first quarter of last year, when EIA sales hit $1.5 billion, this years first quarter EIA sales were down 16.1%, the report notes.
Marrion believes the first quarter EIA sales were impacted by that quarters volatile stock market and also by the higher interest rates that traditional fixed annuities were offering, making FAs more attractive than in several past quarters.
The top EIA seller for the first quarter was Allianz/LifeUSA, which reported a little over $236 million in EIA sales. According to Marrion, this gave the company an 18.76% market share for the period.
Other top sellers, in descending order, were: Midland National, with over $172 million; American Equity, with nearly $152 million; Jackson National, with over $108.5 million; and Conseco, with over $84 million.
The top three companies represent a market share of 44.5% for the period, says Advantage Group, while the top five represent nearly a 60% market share.
The survey reported results from 45 EIA providers. Five of these did not participate and therefore are shown only with estimated results.
In all, Marrion says, 90% of the active EIA companies participated. “They represent 97% of total sales,” he says.