Prudential & AIG Pick Up MetLife's Variable Annuity Business

As MetLife scales back on their variable annuities, other companies are picking up the market share.  According to Bloomberg Business News’ “Prudential Joins AIG Taking Annuities Share From MetLife,” Zachary Tracer says that Prudential and AIG are the main companies who have capitalized on MetLife’s variable annuity changes.  Prudential has sold the most variable annuities this year, according to LIMRA.  Their second quarter sales were $5.35 billion, which was an 18% increase.  Their market share went from 11% at this time last year up to 14% this year.  Prudential’s vice chairman attributes their sales gain to changes that competitors made, making Prudential’s products even more attractive to investors.

AIG, or American International Group Inc., was one of the companies who received a federal bailout.  They increased their market share to 6.1%, according to LIMRA’s recent data.  Their sales of $2.34 billion were a 22% increase for the company.  Overall variable annuities in the second quarter saw a decline of 4.9% from last year to $38.6 billion.  While MetLife reduced their exposure in the variable annuities market, some companies have left it altogether.  Hartford Financial, Genworth Financial, and Sun Life Financial have chosen to exit the variable annuity market.

Despite the fact that MetLife has scaled back on their sales of variable annuities, they were still the third largest seller and held 12% of the market share.  This was down from the 17% market share they held last year as their sales went down 34% to $4.61 billion.  The second highest variable annuity sales after Prudential were from Jackson National, with $5.26 billion.  In order to maintain a solid business, both Prudential and MetLife have had to lower some of their variable annuity guarantees and changed some of the terms of their policies.  AIG’s newest variable annuity is helping them lower risk with an investment option that lessens the ties to volatile market swings.  New leaders will continue to emerge as companies enter and exit the variable annuity market.

Written by

Follow Finance Mama on Twitter!/financemama

Share Button
Comments are closed.


Copyright © 2020 AFYI Holdings Group, LLC. All Rights Reserved. No part of this article may be reproduced without the express written consent of AFYI Holdings Group, LLC. - Prefooter


Mailing Address:

1165 NE 105 St.
Miami Shores, FL 33138



(866) 223-2121

Follow Us On

Click for the BBB Business Review of this Annuities in Miami Shores FL

Copyright © AFYI Holdings Group, LLC, All Rights Reserved

Share On Facebook
Share On Twitter
Share On Linkedin
Share On Pinterest