Indexed annuity sales in the first quarter of 2009 dropped by about 2% when compared with the previous quarter but were up by nearly 23% when compared to the same year earlier period, reports AnnuitySpecs.com, Pleasant Hill, Iowa.
The 1Q 2009 sales totaled $7.1 billion, as compared with nearly $7.3 billion in 4Q 2008 and $5.8 billion in the 1Q of 2008, according to the Advantage Index Product Sales & Market Report: 1st quarter 2009. The report covers 53 indexed annuity providers and one registered indexed annuity carrier, or 94% of the active indexed annuity companies.
The combined market share for the top 5 sellers was 68.7%. Aviva, Des Moines, Iowa, led with a 34% market share, followed by Allianz Life, Minneapolis, Minn.; American Equity, West Des Moines, Iowa; Lincoln National Life, Hartford, Conn., and Midland National Life, Des Moines, Iowa.
Lincoln took a “surprisingly aggressive hold,” moving up to 4th place from 10th, says Sheryl J. Moore, president and chief executive officer of the annuity tracking service and its affiliate, Advantage Group Associates, Inc. Jackson National Life moved up 3 slots, to 6th place.
Thirteen companies have exited the market since the 4Q 2008, says Moore.
Other highlights from 1Q 2009:
–Indexed annuity commissions received by agents averaged 7.6% of premium.