Morningstar Advisor - December/January 2010 - 76

By the Numbers: VAs VA Sales See Some Recovery By Frank O’Connor New sales of variable annuities recovered moderately in the second quarter, increasing by 4.3% to $31.2 billion from a multiyear low of $30 billion in 2009’s first quarter, although sales were still down 24% from second-quarter 2008 sales of $41.1 billion. The improvement was not broad-based; some companies showed large declines and others posted big gains. Assets under management also rose for the first time in several quarters, gaining $1,187 million from $1,067 million in the first quarter. 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 Jackson Natl Life Insurance Co Perspective II Prudential Annuities Life Assurance Corp APEX II John Hancock Life Insurance Co (USA) Venture (2006) Metlife Investors USA Insurance Co MetLife Investors Series L-4 Year Riversource Life Insurance Co RVS RAVA4 Advantage Allianz Life Ins Co of North America Allianz Vision Jackson Natl Life Insurance Co Perspective L John Hancock Life Insurance Co (USA) Venture III Metropolitan Life Insurance Preference Plus Select Prudential Annuities Life Assurance Corp XTra Credit Six Metlife Investors USA Insurance Co MetLife Investors Series VA ING USA Annuity and Life Insurance Co GoldenSelect Landmark AXA Equitable Life Insurance Co Accumulator 2008 Prudential Annuities Life Assurance Corp Advisors Plan III Ohio National Life Insurance Co ONcore Lite Metropolitan Life Insurance Preference Premier Sun Life Financial Masters Flex Lincoln National Life Insurance Company ChoicePlus Assur. (L Share) ING USA Annuity and Life Insurance Co GoldenSelect ES II AXA Equitable Life Insurance Co Accumulator Elite 2008 Pacific Life Insurance Co Pacific Innovations Select Hartford Life Insurance Company Leaders 4 Lincoln National Life Insurance Company American Legacy III View John Hancock Life Insurance Co (USA) Venture Opportunity A Share Pruco Life Insurance Premier VA X Series Pacific Life Insurance Co Pacific Voyages Lincoln National Life Insurance Company American Legacy III Riversource Life Insurance Co RVS RAVA4 Select Massachusetts Mutual Transitions Select Pruco Life Insurance Premier VA L Series MetLife Investors Insurance Company MetLife Investors Class A Metlife Investors USA Insurance Co MetLife Investors Series XTRA AXA Equitable Life Insurance Co Accumulator 2008.2 Lincoln National Life Insurance Company ChoicePlus Assur. (B Share) Transamerica Life Insurance Company Liberty Thrivent Financial For Lutherans Thrivent - Flexible Prem. DVA 2005 Hartford Life Insurance Company Leaders Outlook 4 Metlife Investors USA Insurance Co PrimElite IV Lincoln National Life Insurance Company ChoicePlus Assur. (A Share) AXA Equitable Life Insurance Co Accumulator Plus 2008 New England Life Insurance Co American Forerunner Series Fidelity Investments Life Ins Fidelity Growth and Guaranteed Income I Transamerica Life Insurance Company Landmark Pruco Life Insurance Premier VA B Series Prudential Annuities Life Assurance Corp XTra Credit Eight Lincoln National Life Insurance Company Am. Leg. Shareholder's Advan. Sun Life Financial Masters Choice Pacific Life Insurance Co Pacific Value Nationwide Life Insurance Co BOA - America's Future II Nationwide Life Insurance Co BOA - All American Gold MetLife led the industry in sales in the second quarter with a 14.4% market share, followed closely by TIAA-CREF (11.5%), Prudential (10.8%), Jackson National (7.2%), and Lincoln National (6.1%). These top five companies represented 50% of second-quarter sales versus the top five companies claiming 46% of sales five years ago. This trend is likely to continue—some companies find it difficult or undesirable to compete effectively in the guaranteed income benefit market. Jackson National’s Perspective II product led retail sales in the second quarter, followed by Prudential Apex II, John Hancock Venture, MetLife Investors Series L, and Perspective L. All of these offer living benefits, albeit at a higher cost and/or lower potential benefit. Fully 75% of sales reported in the second quarter were in qualified plans—living and death benefit guarantees are very much in focus. Just over 85% of second-quarter retail (non-group) sales were in products that still offer some form of withdrawal guarantee, just about the same as the percentage before the credit crisis. Frank O’Connor is manager of Morningstar’s variable annuity software applications. Data as of June 30, 2009 GMWB Guaranteed Minimum Withdrawal Benefit GMIB Guaranteed Minimum Income Benefit 76 Morningstar Advisor December/January 2010
Morningstar Advisor - December/January 2010

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