2004 Variable Life Sales At $2.7 Billion, Rose 11% From 2003 4th quarter sales were up 20% over previous quarter
For 2004, the top 5 companies/fleetsHartford Life, IDS, Pacific Life, AXA Financial/MONY and Nationwidecaptured 41% of all VL sales (including single premiums at 10%), while the top 10 companies/fleets garnered 64% of VL sales. For 2004, IDS reported the highest annual premiums ($170.4 million). Although Hartford Life ranked first based on total sales, it ranked fourth based on annual premium sales.
For the companies in the survey, the number of flexible-premium contracts issued during 2004 increased 6% over the number issued during 2003. The average face amount increased 10% to $339,270, while the percentage of premium allocated to the general account decreased to 6% from 7%.
The single-premium VL market continues to suffer. The total premium for single-premium products for the 6 companies in VALUE for 2004 was $46 million, compared to $58 million for 2003.
The number of single-premium contracts issued during 2004 was 15% lower than the number issued during 2003. The average face amount decreased 6% to $126,766, while the average premium decreased 7% to $55,623.
The total premium for second-to-die products issued during 2004 for the companies in the survey was $320 million, compared to $289 million during 2003.
The number of second-to-die contracts (including single-premium and flexible-premium products) issued during 2004 rose 2% from 2003. The average face amount increased 13% to $2,332,586.