Full year 2005 variable life insurance sales of $2.595 billion were 4.6% lower than full year 2004 sales of $2.72 billion, according to the VALUE survey.
VL insurance sales with single premiums included at 10% for the 42 companies reporting in the VALUE survey for fourth quarter 2005 were $718 million, a 14.2% increase over third quarter 2005, exhibiting the typical seasonality trends of life insurance sales, but a 4% decrease from fourth quarter 2004 sales, which were $748 million.
(Sales include first-year annualized premium, drop-in premiums and 10% of single premiums.)
The market estimate for 2005 with single premiums included at 10% is $2.7 billion, down from $2.85 billion for the full year 2004.
Variable life sales with single premiums included at 100% for the 42 companies in the VALUE survey for fourth quarter 2005 were $727 million, a 14.3% increase over third quarter 2005, which had sales of $636 million, but a 4.6% decrease from fourth quarter 2004 sales, which were $762 million.
The market estimate for 2005 with single premiums included at 100% is $2.765 billion.
For 2005, the top five companies/fleets–IDS, Hartford Life, Pacific Life, MetLife and John Hancock–captured 43% of all VL sales (including single premiums at 10%), while the top 10 companies/fleets garnered 69% of VL sales.
For the companies in the survey, the number of flexible-premium contracts issued during 2005 decreased 11% from the number issued during 2004. The average face amount increased 8% to $365,369.
The single-premium VL market continues to suffer. The total premium for single-premium products for the six companies in VALUE for 2005 was $35 million, compared to $46 million for 2004.