Morningstar Advisor - August/September 2010 - 76

By the Numbers: VAs

VA Sales Slip a Bit in First Quarter
By Frank O’Connor
New variable annuity sales dropped a slight 0.70% in the first quarter of 2010, to $31.2 billion, but they were up 4.63% from the first quarter of 2009’s $29.8 billion. While not as strong as previous sales recoveries—VA sales increased by 10.8% in 2003—this time around an explosion of living benefit options did not accompany the rebound in market performance. With living benefits now more expensive and restrictive, on balance, muted future sales growth is expected unless the product is used by more advisors and understood and embraced by more investors. Assets continued to rise in the first quarter primarily because of positive market returns. As of March 31, total assets in variable annuities were $1,397.5 billion, up 3.2% over year-end 2009 assets and 31% higher than the $1,067.3 billion under management at the end of 2009’s first quarter. The top five retail products in the first quarter were Jackson National Perspective II ($1.56 billion in sales), Prudential APEX II ($1.24 billion), Jackson National Perspective L ($1.10 billion), Prudential XTra Credit Six ($1.01 billion), and Prudential Advisors Plan III ($0.91 billion). VALIC Portfolio Director had $0.96 billion in sales, but this product is primarily sold into the group plan market. The top five products are also the top five sellers in the independent planner channel, and all five report the bulk of their sales in this channel. Strong compensation and the continuation of guarantees, albeit somewhat more expensive and restrictive, are clearly appealing to independent advisors.
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 Prudential Annuities Life Assurance Corp APEX II Jackson Natl Life Insurance Co Perspective L Prudential Annuities Life Assurance Corp XTra Credit Six Variable Annuity Life Insurance Co Portfolio Director Prudential Annuities Life Assurance Corp Advisors Plan III Metropolitan Life Insurance Preference Premier Metlife Investors USA Insurance Co MetLife Investors Series L-4 Year Metlife Investors USA Insurance Co MetLife Investors Series VA Allianz Life Ins Co of North America Allianz Vision Riversource Life Insurance Co RVS RAVA4 Advantage Lincoln National Life Insurance Company American Legacy III Pruco Life Insurance Premier VA L Series Pruco Life Insurance Premier VA B Series Sun Life Assurance Co Of Canada Us Masters Flex Pruco Life Insurance Premier VA X Series Thrivent Financial For Lutherans Thrivent - Flexible Prem. DVA 2005 Fidelity Investments Life Ins Personal Retirement Lincoln National Life Insurance Company ChoicePlus Assur. (L Share) Lincoln National Life Insurance Company ChoicePlus Assur. (B Share) Lincoln National Life Insurance Company ChoicePlus Assur. (A Share) John Hancock Life Insurance Co (USA) Venture (2006) Pacific Life Insurance Co Pacific Voyages Transamerica Life Insurance Company Landmark Sun Life Assurance Co Of Canada Us Masters Choice AXA Equitable Life Insurance Co Accumulator 2009 Metlife Investors USA Insurance Co MetLife Investors PrimElite IV Pacific Life Insurance Co Pacific Innovations Select Riversource Life Insurance Co RVS RAVA4 Select Metlife Investors USA Insurance Co MetLife Investors Series XTRA Lincoln National Life Insurance Company American Legacy III View Transamerica Life Insurance Company Liberty Nationwide Life Insurance Co BOA - Future Venue Metlife Investors USA Insurance Co MetLife Growth and Guaranteed Income Hartford Life Insurance Company Leaders 4 New York Life Insurance & Annuity Corp NYL Premier Plus - Level Fee Metropolitan Life Insurance Preference Plus Select (B) John Hancock Life Insurance Co (USA) Venture Opportunity A Share Sunamerica Annuity and Life Assurance Co Polaris Choice III MetLife Investors Insurance Company MetLife Investors Class A Protective Life Insurance Company ProtectiveValues (2009) Prudential Annuities Life Assurance Corp LifeVest II Massachusetts Mutual Life Insurance Transitions Select Jackson Natl Life Insurance Co Perspective Advisors II Nationwide Life Insurance Co BOA - America's Future II Pacific Life Insurance Co Pacific Value Mutual Of America Life Insurance CO MOA Separate Acct 2 Nationwide Life Insurance Co BOA - All American Gold Nationwide Life Insurance Co BOA - Elite Venue ING USA Annuity and Life Insurance Co GoldenSelect Landmark

Data as of March 31, 2010
GMWB Guaranteed Minimum Withdrawal Benefit GMIB Guaranteed Minimum Income Benefit

76 Morningstar Advisor August/September 2010



Morningstar Advisor - August/September 2010

Table of Contents for the Digital Edition of Morningstar Advisor - August/September 2010

Morningstar Advisor - August/September 2010
Contents
New on MorningstarAdvisor.com
Contributors
Letter From the Editor
What Aspects of Health-Care Reform Will Most Affect Your Clients?
Bonds, Chicago Style
Investment Briefs
Which Risk Are You Managing?
Eye on the Prize
Advisors Can’t Rely on Fidelity Alone
Health Care Gets Back to Business
An Opportune Time to Bet the Pharm
Reform’s Impact on Other Health-Care Industries
Top Takeover Targets in Biotech
After Reform, Narrow-Moat Firms Have Strong Prospects in Diagnostics
Health-Care Investing Alive and Well
Quest for Knowledge
Four Picks for the Present
How to Make Your Bond Portfolio Inflation-Resistant
Weeding Through the Energy Patch
Uncertainty and Value in Basic Materials
Stock Market Doom-Busters
Hunting Down European Debt-Dodgers
Mutual Fund Analyst Picks
50 Most Popular Equity ETFs
Undervalued Stocks With Wide Moats
VA Sales Slip a Bit in First Quarter
New at Morningstar
Star Wars, the Sequel
Morningstar Advisor - August/September 2010 - Morningstar Advisor - August/September 2010
Morningstar Advisor - August/September 2010 - Cover2
Morningstar Advisor - August/September 2010 - 1
Morningstar Advisor - August/September 2010 - 2
Morningstar Advisor - August/September 2010 - Contents
Morningstar Advisor - August/September 2010 - 4
Morningstar Advisor - August/September 2010 - 5
Morningstar Advisor - August/September 2010 - New on MorningstarAdvisor.com
Morningstar Advisor - August/September 2010 - 7
Morningstar Advisor - August/September 2010 - Contributors
Morningstar Advisor - August/September 2010 - Letter From the Editor
Morningstar Advisor - August/September 2010 - What Aspects of Health-Care Reform Will Most Affect Your Clients?
Morningstar Advisor - August/September 2010 - 11
Morningstar Advisor - August/September 2010 - Bonds, Chicago Style
Morningstar Advisor - August/September 2010 - 13
Morningstar Advisor - August/September 2010 - Investment Briefs
Morningstar Advisor - August/September 2010 - 15
Morningstar Advisor - August/September 2010 - Which Risk Are You Managing?
Morningstar Advisor - August/September 2010 - 17
Morningstar Advisor - August/September 2010 - 18
Morningstar Advisor - August/September 2010 - Eye on the Prize
Morningstar Advisor - August/September 2010 - 20
Morningstar Advisor - August/September 2010 - 21
Morningstar Advisor - August/September 2010 - Advisors Can’t Rely on Fidelity Alone
Morningstar Advisor - August/September 2010 - 23
Morningstar Advisor - August/September 2010 - 24
Morningstar Advisor - August/September 2010 - 25
Morningstar Advisor - August/September 2010 - 26
Morningstar Advisor - August/September 2010 - Health Care Gets Back to Business
Morningstar Advisor - August/September 2010 - An Opportune Time to Bet the Pharm
Morningstar Advisor - August/September 2010 - 29
Morningstar Advisor - August/September 2010 - Reform’s Impact on Other Health-Care Industries
Morningstar Advisor - August/September 2010 - 31
Morningstar Advisor - August/September 2010 - 32
Morningstar Advisor - August/September 2010 - Top Takeover Targets in Biotech
Morningstar Advisor - August/September 2010 - 34
Morningstar Advisor - August/September 2010 - 35
Morningstar Advisor - August/September 2010 - After Reform, Narrow-Moat Firms Have Strong Prospects in Diagnostics
Morningstar Advisor - August/September 2010 - 37
Morningstar Advisor - August/September 2010 - 38
Morningstar Advisor - August/September 2010 - 39
Morningstar Advisor - August/September 2010 - 40
Morningstar Advisor - August/September 2010 - Health-Care Investing Alive and Well
Morningstar Advisor - August/September 2010 - 42
Morningstar Advisor - August/September 2010 - 43
Morningstar Advisor - August/September 2010 - 44
Morningstar Advisor - August/September 2010 - 45
Morningstar Advisor - August/September 2010 - 46
Morningstar Advisor - August/September 2010 - 47
Morningstar Advisor - August/September 2010 - 48
Morningstar Advisor - August/September 2010 - Quest for Knowledge
Morningstar Advisor - August/September 2010 - 50
Morningstar Advisor - August/September 2010 - 51
Morningstar Advisor - August/September 2010 - Four Picks for the Present
Morningstar Advisor - August/September 2010 - 53
Morningstar Advisor - August/September 2010 - How to Make Your Bond Portfolio Inflation-Resistant
Morningstar Advisor - August/September 2010 - 55
Morningstar Advisor - August/September 2010 - 56
Morningstar Advisor - August/September 2010 - 57
Morningstar Advisor - August/September 2010 - Weeding Through the Energy Patch
Morningstar Advisor - August/September 2010 - 59
Morningstar Advisor - August/September 2010 - 60
Morningstar Advisor - August/September 2010 - Uncertainty and Value in Basic Materials
Morningstar Advisor - August/September 2010 - 62
Morningstar Advisor - August/September 2010 - 63
Morningstar Advisor - August/September 2010 - Stock Market Doom-Busters
Morningstar Advisor - August/September 2010 - 65
Morningstar Advisor - August/September 2010 - Hunting Down European Debt-Dodgers
Morningstar Advisor - August/September 2010 - 67
Morningstar Advisor - August/September 2010 - Mutual Fund Analyst Picks
Morningstar Advisor - August/September 2010 - 69
Morningstar Advisor - August/September 2010 - 70
Morningstar Advisor - August/September 2010 - 71
Morningstar Advisor - August/September 2010 - 50 Most Popular Equity ETFs
Morningstar Advisor - August/September 2010 - 73
Morningstar Advisor - August/September 2010 - Undervalued Stocks With Wide Moats
Morningstar Advisor - August/September 2010 - 75
Morningstar Advisor - August/September 2010 - VA Sales Slip a Bit in First Quarter
Morningstar Advisor - August/September 2010 - 77
Morningstar Advisor - August/September 2010 - 78
Morningstar Advisor - August/September 2010 - New at Morningstar
Morningstar Advisor - August/September 2010 - Star Wars, the Sequel
Morningstar Advisor - August/September 2010 - Cover3
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