EVANSTON, Ill., Sept. 21, 2004 (PRIMEZONE) -- The Allianz Life (Allianz Life(R)) PowerDex was second quarter's top-selling product and the best-selling equity-indexed annuity in the Beacon Research quarterly Fixed Annuity Premium Study. MetLife's (NYSE:MET) PG was the top market value-adjusted product, while Genworth Financial (NYSE:GNW) had the best-selling immediate annuity. Second quarter sales were reported for some185 fixed annuity products in all.
The Allianz PowerDex was also the top seller in the independent producer channel during second quarter. Another MetLife MVA, the Fixed Annuity FA, was the best seller in the independent broker-dealer channel. In the career agent channel, Banker's Life and Casualty Company, a wholly-owned subsidiary of Conseco, Inc. (NYSE:CNO), had the best-selling product. Their Bonus Annuity (LA-06T) is a book value product featuring a first-year bonus of two percent. Overall, book value products were second quarter's top sellers in four of seven distribution channels.
"Although second quarter's best-seller was a book value product in most channels, MVA sales increased 54% over the previous quarter. This was the largest increase of all product types," said Jeremy Alexander, president and CEO of Beacon Research. "Carriers specializing in MVA annuities experienced substantial quarter-to-quarter sales growth as well."
Sales of all fixed annuity product types increased from first quarter, 2004. Indexed product sales grew 33%. Sales of immediate annuities were up 18.5%, while book value products had a 16% increase. The total fixed annuity sales of Study participants rose 26% overall.
Second quarter's Fixed Annuity Premium Study also documented the continuing dominance of shorter rate term products. One-year interest guarantee periods accounted for more than 82% of book value sales, unchanged from first quarter, 2004. One-year IGPs were the best-selling rate term for MVA products too, accounting for 36% of second quarter sales. However, there was a shift toward longer rate term MVAs compared to first quarter, when one-year IGPs accounted for almost 47% of MVA sales.
About the Beacon Research Fixed Annuity Premium Study
The quarterly Study is the first to track and analyze product-level fixed annuity sales on an ongoing basis. It features commentary by Milliman USA, a leading actuarial consulting firm recognized for its annuity expertise. Combining Beacon's capabilities in fixed annuity information with Milliman's knowledge and analytic skills, the Study provides timely market intelligence of the highest quality. It's designed to report what's moving in each channel and why. The rapid growth in Study participation commitments- now including 52 major fixed annuity manufacturers -- is testimony to the need for this information.
About Beacon Research
Beacon Research is an independent research organization founded in 1997. It compiles market intelligence on fixed annuity products for subscribers to its web-based systems at www.annuitynexus.com. Carriers access these systems to support product development, rate setting and competition research. Distributors use them for product analysis and selection. The new AnnuityNexus Sales Support System is an important resource for retention teams and sales desk staff throughout the distribution chain. Beacon also licenses information and software tools to other platforms, including websites for sales representatives, AnnuityNet's annuity automation platform, and LifeLink Corporation's insurance sales platform. Beacon's fixed annuity benchmark series -- the industry's first -- is available through Ibbotson Associates. Directly and through strategic alliances, Beacon information can be accessed by hundreds of financial institutions and distributors.
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