|Title:||United States top five annuity sellers by type ranked by dollars in 2010|
|Source:||Life Insurance Selling|
Start of full article - but without data
ANNUITY SELLERS IN 2010
ALL TYPES Prudential Annuities $XX.X billion MetLife $XX.X billion Jackson National Life $XX.X billion TIAA-CREF $XX.X billion AIG Companies $XX.X billion
VARIABLE ANNUITIES Prudential Annuities $XX.X billion MetLife $XX.X billion Jackson National Life $XX.X billion TIAA-CREF $XX.X billion Lincoln Financial Group $X.X billion
FIXED ANNUITIES Allianz Life of North America $X.X billion New York Life $X.X billion AIG Companies $X.X billion AVIVA $X.X billion American Equity Investment Life $X.X billion
Source: LIMRA's U.S. Individual Annuity Sales Survey
If you've been paying attention to financial news, you've probably noticed the headline-making year annuities had in 2010: "Variable annuity assets hit record high," "Annuity sales rise," "Indexed annuity sales up."
But headlines don't tell the whole story. Annuities had a somewhat mixed year, with variable and indexed annuities taking off while fixed annuities dipped. And if you were just scanning the headlines, you likely missed crucial details about who's selling annuities, who's buying them and what the future holds. This by-the-numbers guide breaks it all down.
2010: NOT AS GOOD AS 2009
Overall, annuities sales slipped a bit in 2010. Most analysts blame the slight drop on the performance of fixed annuities.
2010 TOTAL ANNUITY SALES, DOWN FROM $XXX BILLION IN 2009
X% DECREASE IN INDIVIDUAL ANNUITY SALES FROM 2009
Sources: LIMRA's U.S. Individual Annuities Fourth Quarter 2010 Sales Report, IRIS Fourth Quarter and Year-End 2010 Results Report
FIXED ANNUITIES, WHAT A DOWNER
Fixed annuities had a great 2009, but 2010 was clearly not their year. Most analysts attribute the fall to expectations that interest rates will rise. Sales are expected to improve once there's more certainty about interest rates. "Unlike the year-ago quarter, rates were rising in fourth quarter 2010," says Jeremy Alexander, president and CEO of Beacon Research. "This created a disincentive to lock in available fixed annuity rates. These expectations also were a factor in the quarter-to-quarter sales decline. In addition, the spread between corporate bond and Treasury rates narrowed sequentially. Fixed annuities are backed mainly by bonds, so this made their rates relatively less competitive. But on a year-over-year basis, fixed indexed and income annuity sales did grow and we expect that overall results will increase when the rate environment improves."
$XXX.X BILLION: FIXED ANNUITY SALES IN 2009
$XX.X BILLION: FIXED ANNUITY SALES IN 2010 A DROP OF XX.X%
Source: IRI's Fourth Quarter and Year-End 2010 Results Report
VARIABLE ANNUITIES: WAY HOT
Sales of variable annuities took off in 2010, reaching the highest levels Morningstar analysts have seen since they began tracking VA data in 1992. Most agree the product's popularity has a lot to do with 2010's strong equities market, though rising consumer awareness of annuities might have played a role, too. "We attribute the growth to increased confidence in the VA market by consumers, advisors and the companies themselves," says Joseph Montminy, assistant vice president for LIMRA's annuity research. "We saw growth in almost two-thirds of the VA industry in 2010. Strong growth in the equities market and continued interest in guarantee income riders drove fourth quarter VA sales to its highest level in more than two years."
$XXX.X BILLION: VARIABLE ANNUITY SALES IN 2010, AN INCREASE OF XX% FROM 2009
$XX.X BILLION: VARIABLE ANNUITY SALES IN XQ 2010, UP XX% OVER XQ 2009 ($XX.X BILLION) AND UP XX% OVER XQ 2010 ($XX.X BILLION)
Source: IRI's Fourth Quarter and Year-End 2010 Results Report
INDEXED ANNUITIES SHINE
Indexed annuities followed a record-setting 2009 with a record-breaking 2010. Indexed annuities improved on 2009 sales and outperformed fixed-rate deferred annuities for the first time in the fourth quarter of 2010. Allianz Life has reaped the benefits, with a XX% market share as the No. X carrier in the market and MasterDex X, the top-selling indexed annuity product for the seventh consecutive quarter. "I predicted that we'd continue to see record sales of indexed annuities after the market collapsed in 2008, and I'm happy to see that has proven accurate--three years running," says Sheryl J. Moore, president and CEO of AnnuitySpecs. com. "Now that indexed annuities account for XX% of all fixed annuities sold, insurance companies not offering these products won't be able to turn away any longer."
$XX.X BILLION: INDEXED ANNUITIES SALES IN 2010, UP X% FROM 2009
Source: LIMRA's U.S. Individual Annuities Fourth Quarter 2010 Sales Report
XX%: INDEXED ANNUITIES SHARE OF FIXED ANNUITY SALES IN XQ 2010
WHO'S BUYING ANNUITIES?
Annuities continue to be popular with current and soon-to-be retirees, as a majority of advisors say they choose annuities for clients who need retirement income. A recent Insured Retirement Institute (IRI) report found that annuities are especially popular with middle-income clients. "Today, the personal responsibility attached to retirement income is at an all-time high," says Cathy Weatherford, IRI president and CEO. "Millions of Americans are looking for ways to provide themselves with the 'mailbox money' that will give them a guaranteed paycheck for life. Annuities, and their tax-deferred status, are uniquely poised to provide middle-class Americans with the retirement peace of mind they seek."
XX% OF IMMEDIATE ANNUITY CONTRACTS ARE SOLD TO WOMEN
XX: AVERAGE AGE FOR AN IMMEDIATE ANNUITY PURCHASE
$XXX,XXX: AVERAGE IMMEDIATE ANNUITY PREMIUM
XX% OF ANNUITY BUYERS HAVE INCOMES OF LESS THAN $XXX,XXX
XX% OF ANNUITY OWNERS SAY THE DEFERRAL OF TAXES ON THE INSIDE BUILDUP OF ANNUITY CONTRACTS WAS A KEY SELLING POINT FOR THEM
Sources: LIMRA's Guaranteed Income Annuities Report; IRI's The Tax Advantages of Annuities: How Tax Deferral and Guaranteed Lifetime Income Strategies Can Benefit All Consumers; IRI's 2010 Annuity Distribution Survey
FUTURE LOOKS BRIGHT
Most projections show continued strength for annuities in the years ahead, thanks to the "Baby Boomer tsunami" of retirees that began this year. Most reports find, however, that increased educational efforts are needed to better inform new advisors as well as consumers about annuities. "Considering the awareness of insured retirement strategies remains low with consumers and new advisors, insurers will have a genuine opportunity to reach new audiences through education, training tools and information," Weatherford says. "By increasing the awareness of the overall value proposition annuities can offer, the industry will see an even greater acceptance of insured retirement strategies from advisors and consumers alike in the coming year."
$XXX BILLION: ESTIMATED UNREALIZED ANNUITIZATION MARKET
$XX BILLION: ANNUAL FIXED IMMEDIATE ANNUITY SALES BY 2014, ACCORDING TO PROJECTIONS
XX% OF CONSUMERS ARE UNFAMILIAR WITH OR HAVE NO OPINION OF ANNUITIES