NU Online News Service, Jan. 27, 2004, 6:13 p.m. EST – Jackson National Life Insurance Company is starting to see results from its shift to retail products.[@@]
The Lansing, Mich.-based subsidiary of Prudential P.L.C., London, watched its overall sales drop to $6.7 billion in 2003, down 23% from the 2002 total, after it de-emphasized institutional products such as guaranteed investment contracts and medium-term notes.
“Basically, we decided to focus capital resources on retail because Prudential P.L.C. stated that as our goal in early 2003,” says Jackson National spokeswoman Kim Pilgrim.
One effect of the switch is that 93% of Jackson National’s 2003 sales came from products that were not even available through its retail operations before 2002.
Although Jackson National’s overall sales declined in 2003, the company is reporting $3.2 billion in sales of variable annuities for the year. VA sales were 55% higher than they were in 2002, and they were up 22% from the VA sales record that Jackson National notched in 2000, when the stock market and sales of variable products were booming.
Jackson National increased its U.S. VA market share to 2.5% during the first 9 months of 2003, from 1.5% during the comparable period in 2002, according to transaction data from Finetre Corp., Herndon, Va.