TOP 25 VARIABLE ANNUITY ISSUER SALES_Ranked by new SaleS

Document Sample
TOP 25 VARIABLE ANNUITY ISSUER SALES_Ranked by new SaleS Powered By Docstoc
					                     TOP 25 VARIABLE ANNUITY ISSUER SALES (Ranked by new SaleS, $MillionS)
                     sales analysis—Mar. 31, 2009 year-to-date vs. dec. 31, 2008 year-to-date
                     (data iS RepReSentative of the vaRdS* univeRSe only—new contRactS May not be included)

                            Rank by 	    	                                                             	              inteRnal	                	                                       inteRnal	              	               SaleS	      maRket
                           new SaleS	 	                                                           new SaleS	            SaleS	              total	                new	                   SaleS	            total	             Ratio	       ShaRe	
                           2008				2009	 iSSueR                                                    Q1 2009	            Q1 2009	          flow Q1 2009	         SaleS	2008	               2008			         flow 2008	        (new	SaleS)	 (new	SaleS)	

                             2        1      MetLife                                               $3,735.1                $112.3            $3,847.4           $13,951.3               $677.7            $14,629.0          26.77%        12.47%
                             1        2      TIAA-CREF                                                 $3,511.2             $0.0              $3,511.2              $14,511.2              $0.0            $14,511.2         24.20%         11.72%
                             3        3      AXA Financial/MONY                                    $2,897.4                $47.8             $2,945.2           $13,337.0                $211.4           $13,548.4           21.72%        9.67%
                             6        4      PRUDENTIAL/AMERICAN SKANDIA/ALLSTATE                  $2,106.4                 $0.0             $2,106.4           $10,198.3                  $0.0            $10,198.3         20.65%         7.03%
                             7        5      John Hancock Life Insurance Co (USA)                  $2,059.5                 $0.0             $2,059.5           $9,465.6                   $0.0            $9,465.6           21.76%        6.88%
                             4        6      ING GROUP OF COMPANIES                                $1,786.9                $86.9             $1,873.8           $12,281.9               $439.3             $12,721.2          14.55%        5.97%
                             5        7      Lincoln National Life Insurance Company               $1,785.2                $26.0              $1,811.2          $10,983.0               $146.3             $11,129.3          16.25%        5.96%
                             12       8      Jackson Natl Life Insurance Co                        $1,507.5                 $0.0             $1,507.5           $6,465.5                   $0.0            $6,465.5          23.32%         5.03%
                             11       9      Ameriprise Financial                                      $1,314.0             $0.0              $1,314.0              $7,417.2              $0.0              $7,417.2          17.72%        4.39%
                             15      10      Allianz Life Ins Co of North America                      $1,211.9             $2.2              $1,214.1          $3,090.6                   $9.6            $3,100.2          39.21%         4.05%
                             8        11     AIG SUNAMERICA/VALIC                                      $1,178.5             $0.0              $1,178.5              $8,152.4               $0.0            $8,152.4           14.46%        3.93%
                             10      12      Pacific Life Insurance Company                            $973.9               $0.0               $973.9               $7,818.0               $0.0             $7,818.0          12.46%        3.25%
                             13      13      Nationwide Life Insurance Co                              $903.4              $67.7               $971.1               $4,114.5            $495.8             $4,610.3           21.96%        3.02%
                             9       14      Hartford Life Insurance Company                           $703.2                $1.7             $704.9                $7,903.2             $43.8              $7,947.0           8.90%        2.35%
                             14      15      AEGON/TRANSAMERICA                                        $686.9               $8.6              $695.5                $3,275.3             $113.6            $3,388.9          20.97%         2.29%
                             18      16      Sun Life Assurance Co of Canada (US)                      $580.1               $0.6              $580.7                $1,993.2               $6.7            $1,999.9          29.10%          1.94%
                             16      17      Fidelity Investments Life Ins                             $458.4               $0.0              $458.4                $2,372.5               $0.0            $2,372.5           19.32%         1.53%
                             19      18      Ohio National Life Insurance Co.                          $426.9               $0.0              $426.9                $1,754.9              $0.0              $1,754.9         24.33%          1.43%
                             21      19      Massachusetts Mutual Life Insurance                        $341.8             $24.5              $366.3                $1,671.5            $349.6             $2,021.1          20.45%          1.14%
                             22      20      THRIVENT FINANCIAL                                        $292.6               $11.0             $303.6                $1,222.9             $62.4              $1,285.3         23.93%         0.98%
                             20      21      New York Life Insurance & Annuity Corp                     $207.2              $0.0               $207.2               $1,678.0               $0.0             $1,678.0          12.35%        0.69%
                             23      22      Northwestern Mutual Life Insurance Co.                     $189.5              $0.0               $189.5                $972.3               $0.0               $972.3           19.49%        0.63%
                             27      23      Guardian Insurance & Annuity                               $160.1              $4.3               $164.4                $467.6               $18.7              $486.3          34.24%         0.53%
                             30      24      Penn Mutual Life Insurance                                 $150.3              $0.0               $150.3                $355.8                $0.0              $355.8          42.24%         0.50%
                             17      25      Genworth Financial                                         $142.4              $0.0               $142.4           $2,300.3                  $10.2            $2,310.5            6.19%        0.48%
                             i
                           	 	nDuStRy	totalS	                                                    $29,953.2 	              $492.8 	       $30,446.0 	           $151,627.9 	            $3,071.2 	        $154,699.1 	         19.75%


                           ThE VARDS* REPORT
                                                                                                                                                                                                                         New Sales        Net Flows
                           Historic va industry net Flows and new sales
                           180
                                                                                                                                                                                                          178.8


                           160

                                                                                                                                                                                         154.9
                           140

                                                                                128.0                                                                128.4              131.7
                                                                                                                                     124.6
                           120
     billions of Dollars




                                                                 114.3                                            112.3
                                                                                               106.7
                           100
                                                   92.9
                           80       82.1                                                                                                                                                                                   151.6


                           60
                                            58.6
                                                          51.1
                                                                         46.8                                                                46.0
                           40                                                           43.9
                                                                                                                                                             40.2
                                                                                                                          30.7                                                                    29.7            34.0                    29.9
                                                                                                        30.0
                           20                                                                                                                                                                                                      23.1
                                                                                                                                                                                20.4

                                                                                                                                                                                                                                                 5.1
                            0
                                     1997              1998         1999          2000            2001                2002              2003             2004             2005                2006                2007         2008         2009**
                                  *Variable Annuity Research and Data Service (VARDS)
                                  **Q1 data. Source: Morningstar. Data as of March 31, 2009


	   www.Financial-Planning.com	                                                                                                                                                    Financial Planning                              September 2009 123
THEdaTa
 quarterly variable annuity tables




   Change Has Come
   As new sales of VAs dropped in the first quarter, the industry saw a bevy of
   changes in the products. By Frank O’Connor
   new sales of variable annuities                ket shares of 11.7%, 9.7%, 7.0% and           Source Single Life GMWB by 0.25%,
   declined even further in the first quar-       6.9%, respectively.                           and SecureSource Joint Life by 0.30%.
   ter of 2009, falling to $30 billion from          In the third-party distribution chan-      Riversource also discontinued the avail-
   fourth-quarter sales of $32.7 billion—an       nels, the top firms were AXA Financial        ability of the Aggressive model portfolio
   8.3% drop. That’s a 26.7% year-over-           with an 11.1% share of bank sales;            option under the GMAB rider.
   year fall, relative to 2008’s first quarter.   MetLife with 14.2% of independent                 Most significant changes to VA
       Sales did show improvement,                financial planner and 17.6% of wire-          products fell into one of three catego-
   though, as the first quarter came to a         house sales; and John Hancock with            ries: 1) restructuring of benefits, includ-
   close. The March estimate of industry          16.8% of total sales by advisors affili-      ing fee increases, withdrawal rate and/or
   sales was $10.8 billion versus the Janu-       ated with regional brokerage firms.           roll-up reductions, more conservative
   ary estimate of $8.75 billion—a 23.4%                                                        asset allocation requirements; 2) benefit
   increase. But while any improvement            CHANGE ON THE HORIZON                         closures; and 3) passively managed funds
   is welcome news, the strength of sales         The top-selling non-group product was         replacing actively managed funds for use
   in March may have been driven by the           Allianz Vision with $944.5 million in         under a guaranteed living benefit.

   Products in the lab today will offer less lucrative benefits. but
   investors will embrace the idea of placing a floor under losses.
   combination of annual tax planning,            new sales, or 3.9% of total retail VA             We expect to see any new products
   relatively strong equity market perfor-        sales. Allianz closed several living-ben-     or riders that launch this summer to
   mance, and a rush to invest prior to the       efit riders as of April 1, and it’s common    continue to offer lower guarantees, at a
   closing of living-benefit options.             to see sales spike when popular benefits      higher cost, and with less risk allowed
                                                  remain available for a grace period after     in the portfolio. The products in the
   MORE BAD NEWS                                  their termination is announced.               lab today will certainly offer less-lucra-
   Assets under management also declined,             Venture III was closed to new sales as    tive benefits. However, the sobering
   falling 4.4% to $1.066 billion from            of April 3, and the living benefits offered   reality of what negative returns can do
   December. The S&P 500 dropped                  in the others have either been removed        to a portfolio (not to mention retire-
   11.7% over the same period, but as             or significantly modified. Recent             ment plans) will help this industry
   AUM in the general account of the issu-        changes include: Jackson National             grow—albeit less rapidly—in the com-
   ers and fixed-income separate account          closed the FutureGuard 6 GMIB                 ing months, as more investors embrace
   AUM now has a larger slice of the asset        rider on April 6; AXA Financial closed        the idea of creating a floor against losses
   pie, AUM’s rise and fall has a much            the standalone GMWB and reduced               for a portion of their investments. FP
   lower correlation to the index.                the GMIB roll-up rate from 6.5% to
       MetLife regained the top spot with         6% on Nov. 19, 2008, followed by a            Frank O’Connor is director of insurance
   $3.7 billion in new sales and a market         reduction to 5% in the Accumulator            solutions at Morningstar.
   share of 12.5%. TIAA-CREF, AXA                 8.2 series launched Feb. 17; and River-
   Financial, Prudential and John Han-
   cock rounded out the top five with mar-
                                                  source increased the current fee for their
                                                  GMAB rider by 0.20%, the Secure-
                                                                                                 To Take The ce quiz online, go To
                                                                                                  www.Financial-planning.com         CE
122	 September 2009						Financial Planning