By Staff Reports
December 2, 2019
Low
rates and regulation combined to keep life insurance sales down in the third
quarter, one leading analyst says.
The new
data was compiled by Wink, Inc. in its 89th edition of Wink’s Sales &
Market Report.
Non-variable
universal life sales for the third quarter were over $816.1 million, down 5.2%
when compared to the previous quarter and down 6.7% as compared to the same
period last year.
Non-variable
universal life sales include both indexed UL and fixed UL product sales.
Noteworthy highlights for total non-variable universal life sales in the third
quarter included Pacific Life Companies retaining the No. 1 ranking overall for
non-variable universal life sales, with a market share of 10.7%.
Pacific
Life Pacific Discovery Xelerator IUL 2 was the No. 1 selling product for
non-variable universal life sales, for all channels combined.
All charts courtesy of Wink, Inc.
Indexed
life sales for the third quarter were $529.1 million, down 4.2% when compared
with the prior quarter, and down more than 0.1% as compared to the same period
last year. Indexed life sales include both indexed UL and indexed whole life.
“While
third quarter is typically a crummy quarter for life sales, this one was
particularly challenging," said Sheryl Moore, president and CEO of Wink,
Inc. "It is going to be interesting to see how pending regulation on AG49
will affect indexed life sales next year.”
Items
of interest in the indexed life market included Pacific Life Companies
retaining the No. 1 ranking in indexed life sales, with a 16% market share.
National Life Group, Transamerica, Lincoln National Life, and Nationwide
rounded-out the top five, respectively.
Pacific
Life Pacific Discovery Xelerator IUL 2 was the No. 1 selling indexed life
insurance product, for all channels combined. The top pricing objective for
sales this quarter was Cash Accumulation, capturing 76.6% of sales. The average
indexed life target premium for the quarter $13,374, an increase of nearly 35%
from the prior quarter.
Fixed UL third-quarter sales were $287.7 million, down 7.2% when
compared with the previous quarter and down 17% as compared to the same period
last year. Noteworthy highlights for fixed universal life in the third quarter
included the top pricing objective of No Lapse Guarantee capturing 68% of
sales.
In
addition, the average UL target premium for the quarter was $4,255, a decline
of 23% from the prior quarter.
Whole life third-quarter sales were over $1.1 billion, down 0.5%
when compared with the prior quarter, and up 7.2% as compared to the same
period last year. Items of interest in the whole life market included the top
pricing objective of Cash Accumulation capturing 74.3% of sales.
The
average premium per whole life policy for the quarter was $2,901, a decline of
6% from the prior quarter.
“I am
anticipating that the fourth quarter will be stronger for all life insurance
sales,” Moore said. “With all the old products for PBR and 2001 CSO sunsetting,
along with salespeople's’ efforts to qualify for production bonuses and
incentives, the last leg of the year should yield strong life sales.”
Wink currently reports on indexed universal life, indexed whole
life, universal life, whole life and all deferred annuity lines’ product sales.
Sales reporting on additional product lines will follow at some point in the
future, Moore said.
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