Morningstar Advisor - Summer 2008 - (Page 90)

By the Numbers: VAs New VA Sales, AUM Drop a Bit By Frank O’Connor New sales of variable annuities totaled $40.9 billion in the first quarter of 2008, a 12.4% decrease from fourth-quarter 2007 new sales of $46.7 billion and a 1.2% increase over firstquarter 2007 new sales of $40.4 billion. Assets under management as of March 31 dropped 5.9% to $1,389.5 billion from Dec. 31 AUM of $1,476.1 billion. Assets were almost flat from March 31, 2007, total AUM of $1,388.3. Net flow was also down in the first quarter, to $7.2 billion from fourth quarter 2007 net flow of $9 billion, a 20.1% decline. On a year-over-year basis, however, net cash flow showed significant improvement, posting a 12.3% increase relative to the first quarter of 2007 total of $6.4 billion. Once again, AXA Equitable held the numberone spot in variable annuity sales, with $3.6 billion in total new sales for the quarter. MetLife, holder of the number-one spot in the second and third quarter of 2007, slipped to the number-four ranking with $3.2 billion in total new sales for the first quarter of 2008. The top three positions have become increasingly competitive in the past year, with market share of 0.1% or 0.2% often determining rank. The top five companies were AXA Equitable with $3.6 billion in sales and 8.8% market share; TIAA-CREF at $3.5 billion and 8.6%; ING Group of Companies (a new entrant to the top five, historically ranking, on average, in the lower half of the top 10) at $3.5 billion at 8.5%; MetLife at $3.2 billion and 7.8%; and Lincoln National at $2.9 billion and market share of 7.2%. Sales of the top 25 VA products in the first quarter of 2008, including group products, totaled $21.4 billion, representing 52.3% share of the total registered product market. Frank O’Connor is manager of Morningstar’s variable annuity software applications. Sales Rank Contract Name 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 ING USA Annuity and Life Insurance Co GoldenSelect Landmark John Hancock Life Insurance Co (USA) Venture III RiverSource Life Insurance Company RVS RAVA4 Advantage AXA Equitable Life Insurance Co Accumulator Elite 2007 Prudential Annuities Life Assurance Corp XTra Credit Six Jackson Natl Life Insurance Co Perspective II Pacific Life Insurance Company Pacific Innovations Select AXA Equitable Life Insurance Co Accumulator 2007 Metropolitan Life Insurance Preference Plus Select ING USA Annuity and Life Insurance Co GoldenSelect ES II John Hancock Life Insurance Co (USA) Venture (2006) AXA Equitable Life Insurance Co Accumulator Plus 2007 Hartford Life Insurance Company Leaders 3 Prudential Annuities Life Assurance Corp APEX II Lincoln National Life Insurance Company American Legacy III View Pacific Life Insurance Company Pacific Value Jackson Natl Life Insurance Co Perspective L Series Hartford Life Insurance Company Leaders Outlook 3 Pacific Life Insurance Company Pacific Voyages Hartford Life Insurance Company Director M ING USA Annuity and Life Insurance Co GoldenSelect PREMIUM PLUS Lincoln National Life Insurance Company ChoicePlus Assur. (L Share) Fidelity Investments Life Ins Fidelity Growth and Guaranteed Income MetLife Investors USA Insurance Company MetLife Investors Series XC VA Lincoln National Life Insurance Company American Legacy III Fidelity Investments Life Ins Personal Retirement RiverSource Life Insurance Company RVS RAVA4 Select John Hancock Life Insurance Co (USA) Venture Vantage Allianz Life Ins Co of North America Allianz Vision Lincoln National Life Insurance Company Am. Leg. Shareholder's Advan. MetLife Investors USA Insurance Company MetLife Investors Series L-4 Year Pruco Life Insurance Premier VA X Series Sun Life Assurance Co of Canada (US) Masters Flex Genworth Life and Annuity Insurance Co. RetireReady Choice Ohio National Life Insurance Co. ONcore Lite Hartford Life Insurance Company Director M Outlook AIG SunAmerica Life Assurance Company Polaris Choice III AIG SunAmerica Life Assurance Company Polaris II A-Class Platinum Series Nationwide Life Insurance Co BOA - All American Gold Massachusetts Mutual Life Insurance Transitions Select New England Life Insurance Co American Forerunner Series Prudential Annuities Life Assurance Corp Advisors Plan III Thrivent Financial For Lutherans Thrivent - Flexible Prem. DVA 2005 Lincoln National Life Insurance Company ChoicePlus Assur. (Bonus) MetLife Investors USA Insurance Company PrimElite IV Nationwide Life Insurance Co BOA - America's Future II Lincoln National Life Insurance Company ChoicePlus Assur. (B Share) Genworth Life and Annuity Insurance Co. RetireReady Selections ING USA Annuity and Life Insurance Co ING Architect VA Hartford Life Insurance Company Leaders Plus 3 Data as of March 31, 2008 GMWB Guaranteed Minimum Withdrawal Benefit GMIB Guaranteed Minimum Income Benefit 90 Morningstar Advisor Summer 2008

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Morningstar Advisor - Summer 2008 Contents Letter from the Editor Contributors Inbox College Planning: Solutions and Concerns ETFs: The Next Chapter Engineering Financial Advice Investment Briefs Flexible vs. Style-Pure Managers: The Evidence Forging a New Commodity Index Work Your Way Through College Planning Sizing Up the Options Best and Worst 529 College-Savings Plans A 529 Travel Guide 10 Tax-Smart Tips for College-Savings Planning Global Dialogue How Sequoia Cranks Out Good Returns Year After Year The Many Layers of David Winters Living on the Edge Stocks to Buy Once a Decade With Munis Feeling the Pain, Some Opportunities Arise Health Care Provides Shelter from Economic Storm Help Your Clients Get More Out of Their Bond Portfolios Mutual Fund Analyst Picks 50 Most Popular Equity ETFs Undervalued Stocks Most Popular Variable Annuities New at Morningstar New on MorningstarAdvisor.com Closer to Fine

Morningstar Advisor - Summer 2008

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