Equity index annuities continued their strong sales streaks in the 3rd quarter of 2001, with the industry total reaching $1.59 billion.
Thats up 31% over 3rd quarter 2000 sales of $1.213 billion, says Jack Marrion, owner of The Advantage Group, an index product research and consulting firm in Maryland Heights, Mo.
The figures are based on a fall survey by his firm of 42 equity index annuity providers.
Four carriers declined to participate, so their results are estimated, says Marrion. Those companies participating in the survey represent roughly 91% of all active EIA insurers and 99% of total sales, he adds.
This years 3rd quarter sales were down slightlyby 0.75%, to be exact–from 2nd quarter 2001 figures, he notes. But EIA sales for the first nine months of 2001 were up 8.5% over the same nine-month period in 2000, he says, so the 2001 sales picture strongly favors industrywide growth.
In the 3rd quarter, Midland National bumped Allianz out of first place, a position it has held in the Advantage Group quarterly rankings since the 2nd quarter of 2000. For the quarter, Allianz took second place
Third, fourth, and fifth place went to American Equity, AmerUS Group, and Jackson National, respectivelythe same positions all three companies held in the 2nd quarter.
“Most likely, 2001 will be a record-setting year for equity index annuity sales,” predicts Marrion.
“Annual reset policy structures and crediting methodologies that use averaging continue to dominate the market,” he says. “EIAs having surrender periods of 10 years or longer account for four out of five sales. Policies paying commissions of 9% or more represent 79% of the sales.”
Reproduced from National Underwriter Life & Health/Financial Services Edition, December 17, 2001. Copyright 2001 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.