Annuity sales in the U.S. have been growing at a rapid pace given the growing needs among retirees and individuals looking for investment options amid the recent market volatility. A recently released survey by SNL reveals that the funds flowing into annuities increased by nearly 15% in the first nine months of this year. [1] The study included annuity funds in the form of periodic and lump sum payments made to purchase individual, group, fixed and variable annuity plans. It included results from top annuity sellers such as MetLife (NYSE:MET), Prudential Financial (NYSE:PRU), AIG (NYSE:AIG) and Manulife (NYSE:MFC).
See our full analysis of MetLife, AIG, Prudential and Manulife
MetLife emerged as the largest seller of annuities with annuity considerations of $36.37 billion in the first nine months of 2011, an increase of 47% compared to the previous year. MetLife was also successful in increasing its market share 323 basis points to 14.61%.
Prudential Financial saw a 4.92% increase in its annuity considerations but witnessed a decline of 85 basis points in market share as the increase in annuity considerations was lower than the increases among the other top five insurers.
AIG did well and increased its annuity considerations by 37% to $13.09 billion in the first nine months of 2011 compared to $9.54 billion same period last year. AIG’s market share also increased from 4.4% to 5.25%.
Manulife was the only insurer among the top 10 annuity providers to have witnessed a decline in its annuity considerations, which decreased from $12.42 billion in 2010 to $11.68 billion in 2011, and its market share was also down from 5.7% in 2010 to 4.7% this year.
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Notes:- SNL Financial: Annuity Considerations Up Nearly 15% in 2011, LifeHealthPro, December 13, 2011 [↩]
