EVANSTON, Ill., June 10, 2005 (PRIMEZONE) -- MasterDex, an Allianz Life (NYSE:AZ) indexed annuity, was first quarter's top-selling product in the Beacon Research Fixed Annuity Premium Study for the third consecutive period. Two book value products -- New York Life's LifeStages/MainStay Single Premium Fixed Annuity(a) and Allstate Financial's (NYSE:ALL) Preferred Performance -- were number two and three, respectively. Sun Life's (NYSE:SLF) Keyport Index Multipoint took fourth place, while the ING US (NYSE:ING) Secure Index annuity came in fifth. First quarter sales were reported for some 208 products by 47 participating insurance companies.
Rank Company Name Product Name Product Type
---- ------------ ------------ ------------
1 Allianz Life MasterDex Indexed
2 New York Life LifeStages/MainStay
Single Premium Fixed
Annuity Book Value
3 Allstate Financial Preferred Performance Book Value
4 Sun Life Financial Keyport Index Multipoint Indexed
5 ING USA
Annuity & Life Secure Index Indexed
Two of the five top products overall also led sales in a distribution channel, with the Allianz MasterDex tops among independent producers and New York Life's MainStay (LifeStages) Single Premium Fixed Annuity the bank channel leader. Modern Woodmen's Flexible Premium Deferred Annuity was the leading captive agent product. Among independent broker-dealers, MetLife's immediate annuity led first quarter sales. An Allstate product -- Choice Rate (with MVA) -- was the best-seller among large/regional broker-dealers and wirehouses. Genworth's Capital Provider Advantage topped sales in the "Other" category(b).
Channel Company Product Product Type
------- ------- ------- ------------
Banks and S&Ls New York Life MainStay
(LifeStages)
Single Book Value
Premium Fixed
Annuity
Captive Agents Modern Woodmen Flexible Premium Book Value
of America Deferred Annuity
Independent Producers Allianz Life MasterDex Indexed
Independent Broker-
Dealers MetLife Immediate Immediate
Large/Regional
Broker-Dealers Allstate Financial Choice Rate MVA
(with MVA)
Wirehouses Allstate Financial Choice Rate MVA
(with MVA)
Other Genworth Financial Capital Provider
Advantage Book Value
Allstate's Choice Rate (with MVA) was also first quarter's best-selling market-value adjusted (MVA) product. Genworth again had the leading immediate annuity, a position it held throughout 2004.
One-year interest guarantee periods (IGPs) continued to dominate fixed deferred annuity sales. The trend was particularly pronounced among MVA products. One-year IGPs accounted for 40% of MVA sales reported for first quarter, up from a 26% share of sales in fourth quarter, 2004. Among book value products, the dominance of one-year IGPs increased less dramatically, accounting for 85% of first quarter sales compared to an 83% share in fourth quarter, 2004.
Independent producers made 84% of indexed annuity sales reported for first quarter, compared to 83% in fourth quarter, 2004.
"Despite many anecdotal accounts that distribution of these products is increasing among broker-dealers and banks, independent agents and brokers still sell the vast majority of indexed annuities," said Jeremy Alexander, president and CEO of Beacon Research. "This may begin to change in future quarters as new channels become more familiar with these products."
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 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 and AnnuityNet's annuity automation 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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(a) New York Life products sold by career agents carry the LifeStages brand name while those sold through other channels carry the MainStay brand name.
(b) Number of products for which sales were reported per channel: Banks and S&Ls - 52; Captive Agents - 90; Independent Producers - 90; Independent Broker-Dealers - 31; Large/Regional Broker-Dealers - 31; Wirehouses - 16; Other - 8. Some participants, including Sun Life, did not provide product sales at the channel level.