Variable life insurance sales with single premiums included at 10% for the 40 companies reporting in the VALUE survey for the third quarter of 2006 were $566 million, a 4.6% decrease from 2nd quarter 2006 sales of $593 million, and a 5.3% decrease from 3rd quarter 2005 sales, which were $598 million.
Year-to-date 3rd quarter 2006 sales at $1.744 billion were 2.3% lower than year-to-date 3rd quarter 2005 sales of $1.785 billion.
(Sales include first-year annualized premium, drop-in premiums and 10% of single premiums.)
The market estimate for the first 9 months of 2006 with single premiums included at 10% is $1.875 billion, down from $1.955 billion for the comparable period the previous year.
Variable life sales with single premiums included at 100% for the 40 companies in the VALUE survey for the 3rd quarter of 2006 were $573 million, a 4.9% decrease from 2nd quarter 2006, which had sales of $603 million, and a 5.3% decrease from 3rd quarter 2005 sales, which were $606 million.
The market estimate for the first 9 months of 2006 with single premiums included at 100% is $1.935 billion, down from $2.005 billion in the comparable period the year before.
For the first 9 months of 2006, the top 5 companies/fleets–IDS, Hartford Life, John Hancock, Pacific Life and MetLife–captured 48% of all variable life sales (including single premiums at 10%), while the top 10 companies/fleets garnered 74% of VL sales.
For the companies in the survey, the number of flexible-premium contracts issued during the first 9 months of 2006 decreased 15% from the number issued during the comparable period in 2005. The average face amount increased 6% to $374,498.
The single-premium VL market continues to suffer. The total premium for single-premium products for the 7 companies in the VALUE survey for the first 9 months of 2006 was $21 million, compared to $26 million for the same period the year before.