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June 28, 2001 at 08:00 PM
1Q 2001 Variable Life Sales Off 17% From 4Q 2000
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Variable life sales with single premiums included at 10% for the 56 companies reporting in Tillinghasts VALUE survey for the first quarter of 2001 were $1.58 billion. This is a 17% decrease from the fourth quarter of 2000 and a 2% increase over the first quarter of 2000, which had sales of $1.545 billion. (Sales include first-year annualized premium, drop-in premiums and single premiums.)
The market estimate for the first quarter of 2001 with single premiums included at 10% is $1.63 billion.
For the first quarter of 2001, the top five companies– MetLife/NEF/GenAm/COVA, Pacific Life, IDS Life, ING Life and Equitable–captured 32% of all variable life sales (including single premiums at 10%), while the top 10 companies captured 54% of all sales.
In 2000, the top five companies–IDS, MetLife/NEF/GenAm/COVA, Pacific Life, Hartford and Aegon–captured 34% of all variable life sales, while the top 10 companies controlled 57%.
For the first quarter of 2001, Pacific Life reported the highest annual premiums ($95.7 million), although it ranked second for the year.
For the companies reporting in the survey, the number of flexible-premium contracts issued during the first quarter of 2001 decreased 16% from the number of contracts issued during the first quarter of 2000. The average face amount decreased 5% to $272,198, while the percentage of premium allocated to the general account decreased to 2%.
The total premium for the 17 companies participating in 
VALUE with 18 single-premium products in the first quarter of 2001 was $49 million, compared to $42.4 million in the first quarter of 2000.
The number of single-premium contracts issued during the first quarter of 2001 was 17% lower than the number issued in the first quarter of 2000. The average face amount increased 79% to $276,039, while the average premium increased 39% to $104,478.
The total premium from all second-to-die products issued during the first quarter of 2001 was $253.3 million, compared to $231.6 million in the first quarter of 2000.
The decrease in second-to-die sales may be attributed to the new estate tax legislation that significantly reduces estate taxes over the upcoming years.