The demand for variable annuity products is expected to remain strong, and advisors' interest in these vehicles shows no sign of waning despite recent volatility in the VA market, according to a new report released today by Cogent Research.
Overall, 77 percent of advisors polled expect to continue selling variable annuities and allocate 11 percent of their assets under management toward these products.
Of the 15 leading VA providers, Prudential and Jackson National have increased their penetration among VA sellers by 7 percent and 12 percent, respectively, and both firms lead in "advisor investment momentum," which measures advisors' intent to increase or decrease usage of existing providers in the coming year.
The findings are included in Cogent Research's Advisor Brandscape 2012 report, an annual survey of more than 1,700 financial advisors across all channels with at least $5 million in assets under management.
In addition to Prudential and Jackson National, MetLife, Aegon/Transamerica and RiverSource have managed to increase their penetration among VA users over the past year. In particular, Prudential appears to be making inroads among advisors in the regional channel, Cogent says, while RiverSource has improved its penetration among independent advisors, driven in part by an uptick in cross-selling among Ameriprise financial advisors. Jackson National has experienced a significant increase in usage among advisors in the national wirehouse channel.
Cambridge, Mass.-based Cogent Research provides custom research, syndicated research products and evidence-based consulting to organizations in the financial services, life sciences and consumer goods industries.