EVANSTON, Ill., Sept. 7, 2005 (PRIMEZONE) -- MasterDex, an Allianz Life (NYSE:AZ) indexed annuity, was second quarter's top-selling product in the Beacon Research Fixed Annuity Premium Study for the fourth consecutive period. Two book value products -- New York Life's LifeStages/MainStay Single Premium Fixed Annuity(1) and Genworth Financial's (NYSE:GNW) Capital Provider Advantage -- were number two and three, respectively. The ING US (NYSE:ING) Secure Index annuity took fourth place, while Allstate Financial's (NYSE:ALL) Preferred Performance (a book value product) came in fifth. Second quarter sales were reported for some 213 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 Genworth Financial Capital Provider
Advantage Book Value
4 ING USA Annuity &
Life Secure Index Indexed
5 Allstate Financial Preferred Performance Book Value
Four 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 Single Premium Fixed Annuity the bank channel leader. Genworth's Capital Provider Advantage topped sales in the "Other" category. Allstate's Preferred Performance was the best-seller among large/regional broker-dealers. MetLife's immediate annuity led second quarter sales in the independent broker-dealer channel. The top seller among captive agents was another New York Life book value product, the LifeStages Choice Fixed Annuity.(2)
Channel Company Product Product Type
Banks and S&Ls New York Life MainStay Single
Premium Fixed
Annuity Book Value
Captive Agents New York Life LifeStages
Fixed Annuity
Choice Book Value
Independent
Producers Allianz Life MasterDex Indexed
Independent Broker-
Dealers MetLife Immediate Immediate
Large/Regional
Broker-Dealers Allstate
Financial Preferred
Performance Book Value
Wirehouses Sun Life
Financial Keyport Value MVA
Other Genworth Capital Provider
Financial Advantage Book Value
By product type, Allstate Financial's Tactician Plus was second quarter's best-selling market-value adjusted (MVA) product. New York Life had the leading immediate annuity for the first time.
One-year interest guarantee periods (IGPs) continued to dominate MVA sales. This IGP accounted for 39.5% of second quarter sales - virtually unchanged from first quarter, 2005. The situation was somewhat different with regard to book value annuities. The one-year IGP was even more dominant, accounting for more than 77% of second quarter book value sales. But this was down from 85% in first quarter, 2005. Five- and ten-year IGPs increased their share of book value sales relative to first quarter.
From first to second quarter, 2005, the fixed immediate annuity sales of Study participants increased almost 17%. Captive agents replaced independent producers as the most productive distribution channel for this product type, accounting for 37% of second quarter's fixed immediate sales.
"New York Life's retirement income planning innovations are one reason why captive agents sold more fixed immediates than any other distribution channel in second quarter," said Jeremy Alexander, CEO of Beacon Research. "The success of New York Life and Met Life with immediate annuities demonstrates that a well-conceived and implemented program of product development and producer education can generate significant results over time."
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.
Note 1 -- New York Life products sold by career agents carry the LifeStages brand name while those sold through other channels carry the MainStay brand name.
Note 2 -- Number of products for which sales were reported per channel: Banks and S&Ls - 77; Captive Agents - 90; Independent Producers - 108; Independent Broker-Dealers - 31; Large/Regional Broker-Dealers - 31; Wirehouses - 16; Other - 8. Not all of Sun Life's product sales were reported at the channel level.
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