New sales of variable annuities totaled $178.8 billion in 2007, a 15.5% increase over 2006 new sales of $154.8 billion.
On a quarterly basis, new sales of $46.7 billion represented a 3.3% increase over 3rd quarter 2007 new sales of $45.2 billion and a 17.6% increase over 4th quarter 2006 new sales of $39.7 billion.
Assets under management dropped slightly in the 4th quarter, to $1.49 trillion from 3rd quarter assets of $1.5 trillion, a 1.2% decline. Assets increased from $1.38 trillion in the 4th quarter of 2006, a 7.9% increase year over year.
Net flow declined slightly in the 4th quarter, to $9 billion from $9.4 billion in the third quarter of 2007, a 4.3% drop. On an annual basis, however, net cash flow of $34 billion in 2007 showed solid improvement, increasing 14.5% over 2006 total net cash flow of $29.7 billion.
AXA/Equitable moved into the number one spot in variable annuity sales in 2007 with total new sales of $15.5 billion and market share of 8.7%, coming in just ahead of MetLife’s $15.3 billion in total new sales and 8.5% market share.
Sales concentration in the top companies continues to increase–2007 sales data show that just over 70% of all variable annuity sales were in products issued by the top 10 companies. Just 5 years ago, at the end of 2002, the top 10 companies represented 61% of all variable annuity sales. Rounding out the top 5 companies were TIAA-CREF with $14.1 billion in sales and a 7.9% market share, Hartford Life at $13.3 billion and 7.4%, and Lincoln National at $12.8 billion and 7.2%.
Sales of the top 25 variable annuities 2007, including group products, totaled $87.1 billion, with market share of 48.7%.