Indexed annuity sales grow 15.4 percent in 2Q 2014

Forty-five indexed annuity carriers participated in the 68^th edition of Wink’s Sales & Market Report, representing 99.8 percent of indexed annuity production. Total second quarter sales were $12.6 billion. 

Second quarter indexed annuity sales were up 15.43 percent when compared to the previous quarter, and up 36.54 when compared with the same period last year. 

Second quarter sales set a record and toppled the prior fourth quarter, 2013 sales record by almost 9 percent (8.85 percent).

Noteworthy highlights this quarter include Allianz Life maintaining their position as the #1 carrier in indexed annuities, expanding their market share to 30.38 percent. Security Benefit, American Equity Companies, Great American Insurance Group, and Athene USA all sustained their positions, rounding-out the top five. Allianz Life’s Allianz 360 Annuity was the #1 selling indexed annuity for the third consecutive quarter.

Guaranteed Lifetime Withdrawal Benefit (GLWB) utilization increased for the first time since the second quarter of 2013, while experience data pointed to trends in rider elections and income commencement. 

Although there was a slight uptick in GLWB election rates, only a little more than half of all indexed annuity sales are focused on income as opposed to accumulation.

For indexed life sales, 47 insurance carriers participated in Wink’s Sales & Market Report, representing 95.3 percent of production. Second quarter sales were $366.6 million.