Morningstar Advisor - June/July 2009 - 76

By the Numbers: VAs VA Sales Sink with Market By Frank O’Connor New sales of variable annuities continued to decline in the fourth quarter, falling to $32.6 billion from third-quarter sales of $37 billion, an 11.9% drop. More alarming is the 30.2% drop from the $46.7 billion reached in the fourth quarter of 2007. On a full-year basis, sales were down 15.3% in 2008, dropping from 2007 full-year new sales of $178.8 billion to finish the year at $151.5 billion, slightly above our third-quarter forecast of $151 billion. Assets under management fell to $1,123.6 billion from September AUM of $1,295.3 billion and December 2007 AUM of $1,497.3 billion. Absent a recovery of the 22% loss in the S&P 500 since Dec. 31, we expect total industry assets to finish the first quarter around $1 trillion. Not surprisingly, TIAA-CREF led the sales rankings for 2008, followed by MetLife, AXA Equitable, ING Group, and Lincoln National. Together these five firms accounted for 43% of variable annuity sales in 2008. The top-selling nongroup product in 2008 was ING GoldenSelect Landmark, with $4.09 billion in sales. John Hancock Venture III was second (despite leading the wirehouse channel in 2008, with 7.2% of sales) at $4.07 billion. Pacific Life’s Pacific Voyages led the bank channel with a 5.6% bank market share; Jackson National’s Perspective II took the top position in the independent channel with a 4.7% share; Polaris II A-Class Platinum led the regional channel with a 7% share; and Riversource RAVA4 Advantage was tops in the captive agency channel, capturing 8% of agency sales. 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 Jackson Natl Life Insurance Co Perspective II AXA Equitable Life Insurance Co Accumulator 2007 Pacific Life Insurance Company Pacific Innovations Select John Hancock Life Insurance Co (USA) Venture (2006) ING USA Annuity and Life Insurance Co GoldenSelect ES II Prudential Annuities Life Assurance Corp XTra Credit Six AXA Equitable Life Insurance Co Accumulator Plus 2007 Jackson Natl Life Insurance Co Perspective L Series Lincoln National Life Insurance Company American Legacy III View Allianz Life Ins Co of North America Allianz Vision Pacific Life Insurance Company Pacific Voyages Lincoln National Life Insurance Company ChoicePlus Assur. (L Share) Pacific Life Insurance Company Pacific Value MetLife Investors USA Insurance Company MetLife Investors Series L-4 Year MetLife Investors USA Insurance Company MetLife Investors Series XC VA Hartford Life Insurance Company Leaders Outlook 4 ING USA Annuity and Life Insurance Co GoldenSelect PREMIUM PLUS RiverSource Life Insurance Company RVS RAVA4 Select Massachusetts Mutual Life Insurance Transitions Select Pruco Life Insurance Premier VA X Series Lincoln National Life Insurance Company Am. Leg. Shareholder's Advan. Sun Life Assurance Co of Canada (US) Masters Flex John Hancock Life Insurance Co (USA) Venture Vantage Fidelity Investments Life Ins Fidelity Growth and Guaranteed Income I Ohio National Life Insurance Co. ONcore Lite Prudential Annuities Life Assurance Corp Advisors Plan III Genworth Life and Annuity Insurance Co. RetireReady Choice Lincoln National Life Insurance Company ChoicePlus Assur. (B Share) Hartford Life Insurance Company Director M Fidelity Investments Life Ins Personal Retirement I AIG SunAmerica Life Assurance Company Polaris II A-Class Platinum Series Thrivent Financial For Lutherans Thrivent - Flexible Prem. DVA 2005 Lincoln National Life Insurance Company ChoicePlus Assur. (A Share) Prudential Annuities Life Assurance Corp XTra Credit Eight MetLife Investors USA Insurance Company MetLife Investors Series VA Nationwide Life Insurance Co BOA - All American Gold ING USA Annuity and Life Insurance Co ING Architect VA Transamerica Life Insurance Company Liberty Nationwide Life Insurance Co BOA - America's Future II Lincoln National Life Insurance Company ChoicePlus Assur. (A Share) Lincoln National Life Insurance Company ChoicePlus Assur. (Bonus) ING USA Annuity and Life Insurance Co ING Architect VA Genworth Life and Annuity Insurance Co. RetireReady Selections Prudential Annuities Life Assurance Corp LifeVest II AIG SunAmerica Life Assurance Company Polaris Platinum II Transamerica Life Insurance Company Liberty Data as of December 31, 2008 GMWB Guaranteed Minimum Withdrawal Benefit GMIB Guaranteed Minimum Income Benefit 76 Morningstar Advisor June/July 2009

Morningstar Advisor - June/July 2009

Table of Contents for the Digital Edition of Morningstar Advisor - June/July 2009

Morningstar Advisr - June/July 2009
Contents
New on MorningstarAdvisor.com
Letter from the Editor
Contributors
Is SRI a Relevant Investment Strategy?
A Head for Numbers
Building a Business on SRI
Investment Briefs
The Liquidity Premium
Navigating the SRI Patchwork
Profit and Progress
How the Fed Contributes to Crises
Holding Steady
Appleseed Adds Value to SRI Formula
Four Picks for the Present
Long-Term Investors Can Find Value among Industrials
Higher Yields, Hold the Risk
Bargains in U.S. Industrials
Mutual Fund Analyst Picks
50 Most Popular Equity ETFs
Undervalued Stocks
Most Popular Variable Annuities
New at Morningstar
Talkin’ ‘bout a Revolution
Morningstar Advisor - June/July 2009 - 47
Morningstar Advisor - June/July 2009 - Morningstar Advisr - June/July 2009
Morningstar Advisor - June/July 2009 - Cover2
Morningstar Advisor - June/July 2009 - Contents
Morningstar Advisor - June/July 2009 - 2
Morningstar Advisor - June/July 2009 - 3
Morningstar Advisor - June/July 2009 - New on MorningstarAdvisor.com
Morningstar Advisor - June/July 2009 - 5
Morningstar Advisor - June/July 2009 - 6
Morningstar Advisor - June/July 2009 - Letter from the Editor
Morningstar Advisor - June/July 2009 - Contributors
Morningstar Advisor - June/July 2009 - 9
Morningstar Advisor - June/July 2009 - Is SRI a Relevant Investment Strategy?
Morningstar Advisor - June/July 2009 - 11
Morningstar Advisor - June/July 2009 - A Head for Numbers
Morningstar Advisor - June/July 2009 - 13
Morningstar Advisor - June/July 2009 - 14
Morningstar Advisor - June/July 2009 - Building a Business on SRI
Morningstar Advisor - June/July 2009 - 16
Morningstar Advisor - June/July 2009 - 17
Morningstar Advisor - June/July 2009 - Investment Briefs
Morningstar Advisor - June/July 2009 - 19
Morningstar Advisor - June/July 2009 - 20
Morningstar Advisor - June/July 2009 - 21
Morningstar Advisor - June/July 2009 - 22
Morningstar Advisor - June/July 2009 - The Liquidity Premium
Morningstar Advisor - June/July 2009 - 24
Morningstar Advisor - June/July 2009 - 25
Morningstar Advisor - June/July 2009 - 26
Morningstar Advisor - June/July 2009 - 27
Morningstar Advisor - June/July 2009 - 28
Morningstar Advisor - June/July 2009 - 29
Morningstar Advisor - June/July 2009 - Navigating the SRI Patchwork
Morningstar Advisor - June/July 2009 - 31
Morningstar Advisor - June/July 2009 - 32
Morningstar Advisor - June/July 2009 - 33
Morningstar Advisor - June/July 2009 - 34
Morningstar Advisor - June/July 2009 - Profit and Progress
Morningstar Advisor - June/July 2009 - 36
Morningstar Advisor - June/July 2009 - 37
Morningstar Advisor - June/July 2009 - 38
Morningstar Advisor - June/July 2009 - 39
Morningstar Advisor - June/July 2009 - How the Fed Contributes to Crises
Morningstar Advisor - June/July 2009 - 41
Morningstar Advisor - June/July 2009 - 42
Morningstar Advisor - June/July 2009 - 43
Morningstar Advisor - June/July 2009 - 44
Morningstar Advisor - June/July 2009 - 45
Morningstar Advisor - June/July 2009 - 46
Morningstar Advisor - June/July 2009 - 47
Morningstar Advisor - June/July 2009 - Holding Steady
Morningstar Advisor - June/July 2009 - 49
Morningstar Advisor - June/July 2009 - 50
Morningstar Advisor - June/July 2009 - 51
Morningstar Advisor - June/July 2009 - Appleseed Adds Value to SRI Formula
Morningstar Advisor - June/July 2009 - 53
Morningstar Advisor - June/July 2009 - 54
Morningstar Advisor - June/July 2009 - 55
Morningstar Advisor - June/July 2009 - Four Picks for the Present
Morningstar Advisor - June/July 2009 - 57
Morningstar Advisor - June/July 2009 - Long-Term Investors Can Find Value among Industrials
Morningstar Advisor - June/July 2009 - 59
Morningstar Advisor - June/July 2009 - 60
Morningstar Advisor - June/July 2009 - 61
Morningstar Advisor - June/July 2009 - Higher Yields, Hold the Risk
Morningstar Advisor - June/July 2009 - 63
Morningstar Advisor - June/July 2009 - Bargains in U.S. Industrials
Morningstar Advisor - June/July 2009 - 65
Morningstar Advisor - June/July 2009 - Mutual Fund Analyst Picks
Morningstar Advisor - June/July 2009 - 67
Morningstar Advisor - June/July 2009 - 68
Morningstar Advisor - June/July 2009 - 69
Morningstar Advisor - June/July 2009 - 50 Most Popular Equity ETFs
Morningstar Advisor - June/July 2009 - 71
Morningstar Advisor - June/July 2009 - Undervalued Stocks
Morningstar Advisor - June/July 2009 - 73
Morningstar Advisor - June/July 2009 - 74
Morningstar Advisor - June/July 2009 - 75
Morningstar Advisor - June/July 2009 - Most Popular Variable Annuities
Morningstar Advisor - June/July 2009 - 77
Morningstar Advisor - June/July 2009 - 78
Morningstar Advisor - June/July 2009 - New at Morningstar
Morningstar Advisor - June/July 2009 - Talkin’ ‘bout a Revolution
Morningstar Advisor - June/July 2009 - Cover3
Morningstar Advisor - June/July 2009 - Cover4
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