On the heels of strong results reported by Principal, Genworth and The Hartford, Jackson National Life Insurance Co. announced Monday, May 17, that it generated total sales and deposits of $4.4 billion during the first quarter of 2010. The amount marks a 62% increase over the prior year period. According to the company, the increase was driven primarily by a 108% year-over-year rise in variable annuity sales to $3.1 billion.
Jackson also said it set a company record for monthly VA sales in March 2010 with a total of more than $1.3 billion.
“Jackson is continuing to benefit from the sales momentum generated during the financial crisis,” said Clark Manning, Jackson’s president and chief executive officer, in a statement. “Advisors and their clients are attracted by the consistency we have maintained in our product offering, wholesaling support, customer service and financial strength ratings.”
Jackson, an indirect wholly owned subsidiary of the United Kingdom’s Prudential plc (NYSE: PUK), sold $473 million in fixed index annuities during the first quarter of 2010, up nearly 34% over the prior year period.
First quarter 2010 sales of traditional deferred fixed annuities totaled $283 million, compared to $693 million during the first quarter of 2009, as the company continued to manage fixed annuity volumes to preserve capital.
For the seventh consecutive year, Jackson’s flagship variable annuity contract, Perspective II, was the top selling VA contract in the independent channel and 2009 marked the first year that Perspective II was also the top-selling VA contract in the bank channel. Jackson ranked first in the industry in VA net flows during the third and fourth quarters of 2009, and second for the full year.
“Stability was the primary driver of Jackson’s sales success during the last 15 months,” said Clifford Jack, Jackson’s executive vice president and chief distribution officer, also in a prepared statement. “While our adherence to a consistent product pricing strategy cost us some VA market share during the top of the cycle in 2007, we gained market share when the majority of VA providers reacted swiftly to the financial crisis by reducing their offerings or exiting the business altogether. Jackson is increasingly attracting the interest of advisers who are seeking a stable product provider.”
During 2009, Jackson expanded the number of advisors appointed to sell the company’s products by 35% over the prior year. Since the beginning of the financial crisis, Jackson has secured selling agreements with a number of new distribution partners, including Merrill Lynch.