After flat results in 2003, there are signs that the good times might be rolling again.
Transfers to separate accounts grew a handsome 19% for the top 50 life insurers, according to data provided from the NAIC annual database as compiled by National Underwriter Insurance Data Services/Highline Data.
Total transfers to separate accounts reached $161.8 billion in 2004 compared with $135.6 billion in 2003. The total in 2003 was little changed from 2002′s $134.9 billion.
Both 2003 and 2004 saw improvements in the stock market which could have affected transfers to separate accounts, explains Julie Burke, a managing director with Fitch Ratings, Chicago. The improvements in the market compare with 2001 and 2002, which were not good years, she adds.
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In 2004, 23 of the top 50 witnessed a 20%+ increase in transfers to separate accounts, while 6 companies experienced a 10%-20% increase and 8 companies, an increase of 0-9%. Thirteen companies posted a decline in 2004 over 2003.
In 2003, 16 had a 20%+ increase; 1 company, a 10%-20% increase; and 8 companies, an increase of 0-9%. Twenty-five companies experienced a decline in 2003 over 2002.
Allianz Life Insurance Company of North America, Minneapolis, was among the companies posting large year-over-year increases in both 2004 and 2003. Respective increases for those years were 77% and 87%.
Starting in 1999, Allianz Life refocused its efforts on the variable life business, says Ed Oberholtzer, an Allianz Life senior vice president and national sales manager.