After boasting double-digit growth last year, total variable annuity sales fell 6% in the first quarter to $28.1 billion, according to Limra’s U.S. Individual Annuity Sales Survey.
Traditional variable annuity (VA) sales were down 11% year-over-year to $18.5 billion in the first quarter. Registered index-linked annuity (RILA) sales, which had consistently been enjoying double-digit growth, grew only 5% to $9.6 billion in the first quarter.
Last year, VA sales in the fourth quarter, helped by strong equity market growth, jumped 17% from the prior year to $32.3 billion. Total VA sales in 2021 were $125.6 billion, 27% higher than the prior year. Traditional VA sales also recorded 13% growth from 2020 to $21.7 billion in the fourth quarter. For the year, sales totaled $86.6 billion, up 16% from 2020. That, Limra noted, ended nine years of decline.
Variable annuities are sometimes compared to mutual funds because they offer similar investment features. The rate of return changes with the stock, bond and money market funds that you choose as investment options.
The top 10 issuers and their respective first-quarter sales are as follows:
10. New York Life $1.283 billion
Founded in 1845, New York Life is one of the largest life insurance companies in the U.S. It also is the largest mutual life insurance company in the U.S.
9. Nationwide $1.504 billion
Nationwide and its affiliated companies are a group of large U.S. insurance and financial services companies based in Columbus, Ohio. It began in 1926 as Farm Bureau Mutual Automobile Insurance Company and changed its name in 1955. The company also operates regional headquarters in Scottsdale, Ariz.; Des Moines, Iowa; San Antonio; Sacramento, Calif.; and Westerville, Ohio.
8. Prudential Annuities $1.505 billion
Prudential Annuities, based in Shelton, Conn., is a subsidiary of Prudential Financial Inc., which is based in Newark, NJ. The company provides insurance, investment management, and other financial products and services to both retail and institutional customers throughout the U.S. and in over 40 other countries.
7. Allianz Life of North America $1.507 billion
Headquartered in Minneapolis, Allianz Life has been serving Aericans since 1896. It is part of Allianz SE, a global service group founded in 1890 and based in Munich. Allianz SE serves more than 100 million customers worldwide.
6. AIG Companies $1.611 billion
AIG traces its roots back to 1919. It is an American multinational finance and insurance corporation, based in New York, with operations in more than 80 countries and jurisdictions.
5. Brighthouse Financial $1.809 billion
Based in Charlotte, N.C., Brighthouse sbecame an independent company in 2017 after separating from MetLife. It is one of the largest providers of annuities and life insurance in the U.S., with more than two million customers and 2.6 million insurance policies and annuity contracts and life insurance policies in-force.
4. TIAA $1.890 billion
The Teachers Insurance and Annuity Association of America was established in 1918 by the Carnegie Foundation for the Advancement of Teaching to provide guaranteed retirement income and life insurance to educators. It is the leading provider of financial services in the academic, research, medical, cultural and governmental fields.
3. Lincoln Financial Group $2.388 billion
Established in 1905 in Fort Wayne, Ind., the company is headquartered in Radnor, Pa. It operates multiple insurance and investment businesses through subsidiary companies.
2. Equitable Financial $3.713 billion
The company is a subsidiary of Equitable Holdings, which has been a provider of individual retirement, group retirement and life insurance products with more than 2.8 million clients across the U.S. since 1859. It is headquartered in New York.
1. Jackson National Life $4.189 billion
Jackson first opened for business in 1961 as a small family-owned company. The company is headquartered in Lansing, Mich. It provides annuities for retail investors and fixed-income products for institutional investors. Its subsidiaries and affiliates provide specialized asset management and retail brokerage services.
