Pleasant Hill, Iowa. May 27, 2016– Fifty-five indexed annuity carriers participated in the 75th edition of Wink’s Sales & Market Report, representing 99.9% of indexed annuity production. Total first quarter sales were $15.0 billion. First quarter indexed annuity sales were down more than 3.0% when compared to the previous quarter, and up nearly 33.0% when compared with the same period last year. “This was the highest first quarter sales of indexed annuities have been in the history of the product line!” exclaimed Sheryl J. Moore, President and CEO of both Moore Market Intelligence and Wink, Inc. She explained, “While there is typically a huge drop in sales from the fourth to the first quarter, sales of these principal-protection products are down less than 5%! This obviously speaks to the impressive product demand for indexed annuities!”
Noteworthy highlights for the fourth quarter include Allianz Life as the #1 carrier in indexed annuities, with a market share of 18.4%. American Equity Companies held their second-rank position. Rounding out the top five carriers in the market are Great American Insurance Group, AIG, Nationwide, and Midland National Life. Allianz Life’s Allianz 222 Annuity was the #1 selling indexed annuity for the fifth consecutive quarter.
For indexed life sales, 48 insurance carriers participated in Wink’s Sales & Market Report, representing 94.9% of production. First quarter sales were $437.7 million. When evaluating first quarter indexed life sales, results were down over 20.0% when compared with the previous quarter, and up over 13.0% when compared to the same period last year. “This was also the highest first quarter sales have been for indexed life in the history of this product line,” proclaimed Ms. Moore. She added “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.”
Items of interest in the indexed life market this quarter include Transamerica maintaining the #1 ranked company in indexed life sales, with a 15.9% market share and Pacific Life persists as the #2 carrier. National Life Group, Nationwide, and Minnesota Life rounded-out the top five companies, respectively.
Transamerica Premier Financial Foundation IUL was the #1 selling indexed life insurance product for the ninth consecutive quarter. The average indexed UL target premium reported for the quarter was $7,319; a decline of more than 15.0% from the prior quarter.
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