Morningstar Advisor - April/May 2011 - (Page 78)

By the Numbers: VAs VAs Finish 2010 With a Solid Gain By Frank O’Connor Variable annuities ended the year on a strong note. 2010 new sales totaled $136.6 billion, an increase of 10.3% over 2009 sales of $123.9 billion. Sales momentum surged in the fourth quarter, with new sales of $37.1 billion reaching a two-year quarterly high and posting a 17.4% increase over fourth-quarter 2009 new sales of $31.6 billion. Year-end assets under management reached a milestone of just more than $1.5 trillion, an 11.2% increase over year-end 2009 assets of $1.35 trillion and the highest recorded in almost 20 years of variable annuity asset tracking. This also represents a return to pre-crisis asset levels as the previous high-water mark of $1.49 trillion was reached in the third quarter of 2007. New cash flow in the fourth quarter slipped a bit from secondand third-quarter levels, but at $5.4 billion was nevertheless 84% higher than fourth-quarter 2009 net flow of $2.9 billion. $21.5 billion in full-year net flow was up 26.9% over the $17 billion recorded for 2009. Not since 2006 has the change in year-over-year net flow been more positive than the change in sales, and at 15.7% the ratio of net flow to new sales was the highest since 2007; both measures point to improvement in terms of new money versus exchange-fueled sales. Sales ranks and market share remained relatively unchanged from 2009. The numberone and number-two companies remained Prudential and Metlife, with market shares of 16.4% and 13.8%. Jackson National, with a 10.7% share of the market, moved up one spot to rank third in 2010. TIAA-CREF slipped to fourth, and Lincoln remained in the fifth position. 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 Jackson Natl Life Insurance Co Perspective II (7 Yr. CDSC) Pruco Life Insurance Premier Retirement VA B Pruco Life Insurance Premier Retirement VA L Pruco Life Insurance Premier Retirement VA X Jackson Natl Life Insurance Co Perspective L Riversource Life Insurance Co RVS RAVA5 Advantage (10-Yr CDSC) Metlife Investors USA Insurance Co MetLife Investors Series VA Metlife Investors USA Insurance Co MetLife Investors Series L (4 Year) Nationwide Life Insurance Co Nationwide Destination B Metropolitan Life Insurance Preference Premier (B) Lincoln National Life Insurance Company ChoicePlus Assur. (B Share) Fidelity Investments Life Ins Personal Retirement I Lincoln National Life Insurance Company ChoicePlus Assur. (L Share) Allianz Life Ins Co of North America Vision B Lincoln National Life Insurance Company American Legacy III Thrivent Financial For Lutherans Thrivent - Flexible Prem. DVA 2005 Lincoln National Life Insurance Company ChoicePlus Assur. (A Share) - 2006 Metropolitan Life Insurance Preference Premier (R) Nationwide Life Insurance Co Nationwide Destination L Transamerica Life Insurance Company Transamerica Landmark Riversource Life Insurance Co RVS RAVA5 Select Sun Life Assurance Company of Canada US Masters Flex Metlife Investors USA Insurance Co MetLife Growth and Guaranteed Income Transamerica Life Insurance Company Transamerica Liberty Metlife Investors USA Insurance Co MetLife Investors PrimElite IV Sunamerica Annuity and Life Assurance Co Polaris Choice III Pacific Life Insurance Co Pacific Voyages Metlife Investors USA Insurance Co MetLife Investors Series XTRA AXA Equitable Life Insurance Co Retirement Cornerstone Series B John Hancock Life Insurance Co (USA) Venture (2006) Allianz Life Ins Co of North America Vision L Protective Life Insurance Company ProtectiveValues New York Life Insurance & Annuity Corp NYL Premier Plus - Level Fee Pacific Life Insurance Co Pacific Innovations Select Sun Life Assurance Company of Canada US Masters Choice MetLife Investors Insurance Company MetLife Investors Class A Lincoln National Life Insurance Company American Legacy III View Sunamerica Annuity and Life Assurance Co Polaris Platinum III Principal Life Insurance Co Principal Investment Plus Genworth Life and Annuity Insurance Co. RetireReady One B AXA Equitable Life Insurance Co Accumulator 2009 Jackson Natl Life Insurance Co of NY Perspective II NY (7 Yr. CDSC) Pruco Life Insurance Premier Retirement VA C Nationwide Life Insurance Co Nationwide Destination All American Gold Hartford Life Insurance Company Personal Retirement Manager B Massachusetts Mutual Life Insurance Transitions Select Guardian Insurance & Annuity Investor Variable Annuity B Northwestern Mutual Life Insurance Co. Select RR Series - Back Load AXA Equitable Life Insurance Co Retirement Cornerstone Series L Protective Life Insurance Company ProtectiveValues Advantage (85bps) Data as of December 31, 2010 GMWB Guaranteed Minimum Withdrawal Benefit GMIB Guaranteed Minimum Income Benefit 78 Morningstar Advisor April/May 2011

Table of Contents for the Digital Edition of Morningstar Advisor - April/May 2011

Morningstar Advisor - April/May 2011
Contents
Contributors
Letter From the Editor
The Debate That Matters Most
What Can the Mutual Fund Industry Do Better?
Cool Logic, Warm Intent
How to Start a Mutual Fund
Owner and Operator
Middle East Revolts Roil Oil Markets
Four Picks for the Present
Investment Briefs
How We Improve Our Odds of Picking Outperformers
Health Care Survived 2010, but Investors Want Proof
The Global Fund-Leadership Playoffs: Europe vs. the United States
U.S. Fund Investors Have It Good
U.S. Fund Firms Learn to Speak UCITS
Balancing Act
The Tamer Ride
Investors Lend a Hand
Healthy, Wealthy, and Wide
Foreign Funds That Win at Concentration
Mutual Fund Analyst Picks
50 Most Popular ETFs
Undervalued Stocks With Wide Moats
VAs Finish 2010 With a Solid Gain
Buying Good Funds, Poorly

Morningstar Advisor - April/May 2011