The 47th installment of Advantage Index Sales & Market Report, which represents nearly all indexed annuities, showed first quarter sales were up almost 23 percent over last year to $7 billion. “Never has there been a better opportunity to manufacture or sell indexed annuities,” said Sheryl J. Moore, President and CEO of AnnuitySpecs.com.
“The demand for indexed annuities has never been greater because of Americans’ flight to quality from the equities markets. Unfortunately, the supply of annuities cannot keep up with demand.” Moore predicts record-breaking sales this year.
According to the report, the top spot in the indexed annuity market goes to Aviva, while Lincoln National jumped from 10th place to fourth. Jackson National Life moved up from ninth to sixth. American Investors Income Select Bonus came in as the best selling indexed annuity in the market for 2 quarters in a row, while thirteen companies have left that market entirely since the end of 2008.
In the indexed life sales group, first quarter sales reached $105.5 million, down more than 33 percent from the previous quarter and 14 percent over last year. Moore noted, “Several companies were forced to exit the indexed life market abruptly due to pricing issues with 2001 CSO. I anticipate indexed life sales will rebound, as these carriers reenter the market and agents become acclimated with the new 2001 CSO ULs. In addition, I am expecting some big companies to enter the market shortly, which will generate much more interest in these products.”