Annuity FYI Visitor Blog

With $30 billion of sales in 2009, indexed annuities set a record for the highest sales of all time, according to “2009 Indexed Annuity Sales Set Record” from Insurance News Net.  The previous record from 2007 was beat by close to 10%.  Data representing 99% of the companies selling indexed annuities was collected by Annuity Spec’s Indexed Sales and Market Report.  While 4th quarter indexed annuity sales were down from the third quarter, sales levels were adjusting back to a normal level after their record highs.

Allianz Life remained in the top spot for total 2009 sales, as well as staying in the #1 carrier position in the market.  Their MasterDex X held its position as the top selling indexed annuity for the third quarter in a row.  Indexed annuities are tied to the markets, proving that their annuity rates were popular to investors.  After Allianz Life, Aviva moved up to the second spot in this annuities market.  The third, fourth, and fifth spots were occupied by American Equity, Jackson National, and ING.  In regards to bank and wirehouse 4th quarter distributions, Jackson National Life had the most indexed annuity sales.

According to Business Wire press release “For Consumers Nearing Retirement: New Allianz Life Annuity Can Generate Income After Just 5 Years”, Allianz Life Insurance Company of North America is adding to the fixed annuities market with its Endurance Elite product.  Endurance Elite is geared towards investors that are nearing their retirement because the benefits can be as little as 5 years out.  The Census Bureau predicts that almost 30% of the population in 2020 will be over the age of 55 so the timing is right for such a product.

The senior vice president of sales for Allianz Life, Eric J. Thomes, says that the product was developed purely because customers were asking for it.  Protecting their retirement savings into the future is at the forefront of most cautious consumers’ minds.  Endurance Elite offers protection for the principal amount purchased, the possibility of accumulation, and retirement income that is available in as little as 5 years with the potential for growth.  It is already for sale in 40 states.  The income benefit value that is built-in does not add cost and even has a 10% premium bonus.  You will also receive lifetime retirement income based on the income benefit value and the potential for yearly increases.  Rolling over 401k annuities to purchase this new fixed index annuity from Allianz Life may benefit your retirement savings account.

Fixed annuity sales in the United States were $27.8 billion in the second quarter of 2009, according to a press release from Beacon Research.  While the sales were a 20% decrease from the first quarter, they were 10% higher than the second quarter in 2008.  From the highest sales to the lowest, the annuity products sold were book value, indexed, market value adjusted, and fixed income.  All but one type were an increase from the second quarter in 2008.  Indexed and income annuities were up from the previous quarter, while the other two types fell.  Fixed annuities can be purchased with a 401k annuity transfer or an upfront one time purchase.

New York Life took over the top sales spot last quarter from MetLife.  The rest of the top ten was as follows: Aviva USA, Allianz Life, AEGON/Transamerica, American Equity Investment, RiverSource Life, MetLife, Lincoln Financial Group, Jackson National Life, and Western National Life.  New York Life maintained the top sales in both the book value and fixed income annuity products.  The leading indexed annuity seller remained Aviva.  The only change in leaders of the individual products was American National taking over the top sales spot of market value adjusted annuities.  Beacon uses the sales results of 53 insurance companies which represent 86% of annuity sales to determine their findings.

The Allianz Life Insurance Company of North America has been selling annuities, life and long-term care insurance since its inception in 1896, according to company press release “Allianz Life Ratings Reaffirmed and Record Earnings Reported.”  Allianz Life is based in Minneapolis; their parent company is Allianz SE, a global financial services group.  Both their Moody’s and Standard & Poor’s ratings were reaffirmed this year.  Moody’s rates Allianz Life A2 (Good) and their S & P rating is AA (Very Strong).

The second quarter of 2009 was record setting for the company’s profits, which were up 77% from last year.  Their capital position also improved significantly with help from their parent company.  Allianz Life’s President and CEO is grateful to have such a strong parent company during difficult economic times.  They also believe that they have benefited from their conservative investment portfolio.  Using a 401k annuity to ensure guaranteed income for life is becoming more popular as people live longer.  Allianz Life has new variable annuity rider options that it will introduce next week to keep up with consumer demand for annuities.