= Members Only Content
FOR IMMEDIATE RELEASE
April 7, 2011
ABIA Media Contact: Sarah Marshall
(202) 663-5468
E-mail: smarshal@aba.com
ABIA ANNOUNCES FOURTH QUARTER 2010 FIXED ANNUITY SALES IN BANKS
WASHINGTON– The American Bankers Insurance Association today announced estimated fixed annuity sales by banks and other depository institutions in fourth quarter 2010. Results were $3.17 billion, down 48 percent from fourth quarter 2009. Quarter-to-quarter sales declined 20 percent. Sales in calendar year 2010 fell 53 percent to an estimated $15.53 billion.
Large decreases in sales of fixed rate annuities without market-value adjustments (MVAs) drove overall results relative to all three periods. Market estimates are based on findings from the Beacon Research Fixed Annuity Premium Study.
Although results decreased compared to fourth quarter 2009, improved sales were reported by one-third of the bank channel carriers tracked by Beacon's study. Some 22 percent did better quarter-to-quarter. Western National Life continued as the leading bank channel company among study participants. Two fixed annuity issuers dropped out of the top ten from third to fourth quarter 2010, and were replaced by Midland National and Genworth. Fourth quarter 2010 bank channel results for the ten leading companies were as follows:
| Company Name | Bank Channel Sales (in thousands) |
| Western National Life | 1,055,552 |
| New York Life | 453,393 |
| Great American Financial Resources, Inc. | 235,476 |
| Lincoln Financial Group | 219,337 |
| W&S Financial Group | 128,577 |
| American National | 121,206 |
| Protective Life | 97,213 |
| Midland National | 96,502 |
| Pacific Life | 908,853 |
| Genworth | 66,374 |
The New York Life Income Annuity continued as the bank channel's only top-selling income annuity, moving up two notches to come in seventh. Once again, half of the quarter's bank bestsellers were fixed rate non-MVA products issued by Western National. Fourth quarter's leading bank-sold annuities were as follows:
| Rank | Company Name | Product Name | Product Type |
| 1 | New York Life | NYL Preferred Fixed Annuity | Fixed Rate Non-MVA |
| 2 | Lincoln Financial Group | Lincoln New Directions | Indexed |
| 3 | Western National Life | Flex 7 | Fixed Rate Non-MVA |
| 4 | Western National Life | Flex 5 | Fixed Rate Non-MVA |
| 5 | Great American Financial Resources, Inc. | AssurancePlus 7 | Fixed Rate Non-MVA |
| 6 | Western National Life | Proprietary Bank Product A | Fixed Rate Non-MVA |
| 7 | New York Life | NYL Lifetime Income Annuity | Income |
| 8 | Western National Life | Proprietary Bank Product F | Fixed Rate Non-MVA |
| 9 | Western & Southern Life | MultiRate Annuity | Fixed Rate Non-MVA |
| 10 | Western National Life | Proprietary Bank Product B | Fixed Rate Non-MVA |
"The current interest rate environment suggests that fixed annuity sales in banks will gradually increase in 2011," said Jeremy Alexander, president and CEO of Beacon Research. "However, fixed annuities may not do as well as expected if banks raise certificate of deposit rates aggressively to attract deposits as the economy improves. Consumers' inflationary expectations may also limit sales."
The American Bankers Insurance Association (ABIA) is the separately chartered insurance affiliate of the American Bankers Association (ABA) and is the only Washington, D.C.-based full service association for bank insurance interests. The ABIA's mission is to develop policy and provide advocacy for banks in insurance and to support bank insurance operations through research, education, compliance-assistance and peer group networking opportunities. ABIA Membership consists of banks, and their affiliated agencies, insurance companies, marketing, and administrative services suppliers, non-bank lending organizations and other firms involved in the bank affiliated insurance industry. Additional information on the ABIA can be found on the Internet at www.theabia.com.
Beacon Research is an independent research company and application service provider founded in 1997 and based in Evanston, IL. Beacon tracks fixed and variable annuity features, rates and sales. Its quarterly Fixed Annuity Premium Study is the first and only source to analyze fixed annuity sales at the product level. Beacon lowers compliance risk and increases fixed annuity sales with 100% carrier-approved, comprehensive product profiles, spreadsheets and search tools for the advisor/rep websites of banks, TPMs, broker-dealers and marketing organizations. Financial institutions use its systems at www.annuitynexus.com for compliance review of 1035 exchanges, sales support, conservation and product research. Beacon also licenses information to other platforms, including Ebix, Ibbotson, Insurance Technologies, and Interactive Data Corporation. Beacon is a member of National Financial's Alliance program. Directly and through its licensees, Beacon information can be accessed by hundreds of financial institutions and other annuity distributors.
# # #
