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Q3 indexed annuity sales hit $10 billion

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As the end of the year approaches, indexed annuity sales are rushing toward the finish life, hitting a record $10 billion in the third quarter, according to the most recent compilation from Wink’s Sales & Market Report, which tracks indexed annuity and life sales.

That $10 billion figure represents a 9 percent jump from the previous quarter and is 15 percent above the year-ago period. Sheryl J. Moore, president and CEO of both Moore Market Intelligence and Wink, noted in a release that many companies made positive changes to their products in their third quarter and there were a number of “fire sales being offered as well.”

Participating in the survey were 42 indexed annuity carriers, representing more than 98 percent of indexed annuity production.

Allianz Life held the top spot among carriers with a 12.9 percent market share. Security Benefit Life and American Equity maintained their second and third place rankings, followed by Great American and Aviva. For the fifth consecutive quarter, Security Benefit’s Total Value Annuity was the No. 1 selling annuity.

Indexed Life

Sales of indexed life products were a bit more mixed. Sales in Q3 reached $328 million, a drop of 2 percent from the second quarter but up 1 percent when compared to the same quarter a year ago. Year-to-date sales rose 13 percent, and Moore noted that additional carriers were planning to enter the market in the coming quarter.

The top carrier in the space was once again Pacific Life Companies, which retained a 13.5 percent market share. Aegon climbed to the second spot, trailed by AXA Equitable, National Life Group and Minnesota Life. AXA Equitable’s Athena Indexed UL came in first among indexed life products for the 12th consecutive quarter. The average indexed UL target premium reported in Q3 was $6,684, a leap of nearly 16 percent from the prior quarter.

For indexed life sales, 48 insurance carriers reported their results, accounting for 95 percent of production in that category.

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