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Indexed products beat typical first-quarter doldrums

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Indexed annuity sales reached $15 billion during the first quarter, according to Wink’s Sales & Market Report.

First quarter indexed annuity sales were down more than 3 percent compared with the prior quarter but up nearly 33 percent compared with the first quarter of last year.

“This was the highest first quarter sales of indexed annuities have been in the history of the product line,” said Sheryl J. Moore, president and CEO of Wink Inc. “While there is typically a huge drop in sales from the fourth quarter to the first quarter, sales of these principal-protection products are down less than 5 percent. This obviously speaks to the impressive product demand for indexed annuities.”

Fifty-five indexed annuity carriers covering 99.9 percent of the market participated in Wink’s survey.

Allianz Life was the top indexed annuity provider in Wink’s survey with a market share of 18.4 percent. The company’s Allianz 222 Annuity was the top-selling indexed annuity for the seventh straight quarter. American Equity Companies ranked second, followed by Great American Insurance Group, AIG, Nationwide and Midland National Life. 

On the indexed life side, sales were $437.7 million, down 20 percent compared with the fourth quarter, but up 13 percent compared with the first quarter of last year. Wink’s survey included 48 insurance carriers covering 94.9 percent of the market. 

“This was also the highest first quarter sales have been for indexed life in the history of the product line,” said Moore. “While AG49 has definitely impacted IUL illustrations and sales, it is obvious that the value proposition to indexed life purchasers remains the same with this product. People want protection from market losses and the ability to outpace traditional fixed UL rates.”

Transamerica maintained the top spot among indexed life carriers with 15.9 percent market share. The company’s Premier Financial Foundation IUL was the top-selling indexed life insurance product during the quarter. Pacific life ranked second, followed by National Life Group, Nationwide and Minnesota Life.

The average indexed UL target premium reported for the quarter was $7,319, down more than 15 percent from the prior quarter.

See also:

Indexed annuities break quarterly and annual sales records

Top 10 annuity sales leaders

Do’s and don’ts of indexed annuities

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