Jackson, AIG continue to swap lead in $241 billion marketNew market research from the Secured Retirement Institute.
WINDSOR, Conn., March 16, 2020—According to the Secure Retirement Institute® (SRITM) U.S. annuity sales rankings, Jackson was the top seller of total annuities in 2019. Jackson retakes the lead position after losing it to AIG in 2018.
“Jackson has dominated the variable annuity market for the past 7 years. In 2019, Jackson diversified its annuity sales to focus on growing its fixed annuity market share, which propelled its overall growth in 2019,” said Todd Giesing, SRI senior annuity research director. “Jackson’s fixed indexed annuity sales jumped a staggering 1,293% in 2019, while their fixed-rate deferred annuity sales climbed 169%.”
Total annuity sales were $241.7 billion in 2019, an increase of 3% over 2018 results, representing the highest annual annuity sales recorded since 2008. The top 3 manufacturers represented 22% of the market share in 2019, down from 25% market share five years ago (in 2014).
Total variable annuity (VA) sales were $101.9 billion in 2019, rising 2% from 2018 results and marking the second consecutive year of annual growth for VAs. For the seventh straight year, Jackson led the sales in the VA market in 2019. The top three VA sellers represented 36% of the total VA market in 2019, up slightly from 2014 when the top three carriers held 35% of the U.S. VA market.
RILAs Pushing VA Market
Registered index-linked annuities (RILAs) drove the overall growth in the VA market. In 2019, RILA sales were $17.4 billion, up 55%. RILA sales held 17% of the total VA market. Equitable Financial was the top seller of RILAs in 2019, representing 29% of the RILA sales.
”In 2019, we saw a number of new entrants to the rapidly growing RILA market, helping to continue expanding distribution and advisor awareness on these products,” Giesing commented. “Consumers are adding RILAs to their investment portfolios as they near retirement to layer on additional downside protection.”
Fixed annuity sales broke sales records in 2019. Total fixed sales were $139.8 billion in 2019, up 5% from prior year. AIG was the top seller of total fixed annuities in 2019. This is the second consecutive year AIG has led this market. The top three fixed annuity manufacturers represent 23% of the U.S. fixed annuity market, down from 28% from 2014.
For the second year in a row, fixed indexed annuities broke annual sales records. In 2019, FIA sales were $73.5 billion, climbing 6% from 2018 results. For the 11th consecutive year Allianz Life Insurance Company was the top seller of FIAs in the U.S. In 2019, the top three FIA sellers represented 28% of the market, down from 43% five years ago in 2014.
Greater Competition With FIAs
“Over the past several years we have seen a number of new entrants into the U.S. FIA market, including several leading insurers who traditionally were focused on the VA market,” noted Giesing. “This has led to greater competition and choice for consumers, which we believe is a positive trend for the market.”
SRI’s U.S. annuity sales survey represents 94% of the U.S. annuity market. The fourth quarter 2019 Annuities Industry Estimates can be found in LIMRA’s Fact Tank. To view the top 20 rankings of total, variable and fixed annuity writers for 2019, please visit 2019 Annuity Sales Rankings. To view the top 20 rankings of only fixed annuity writers for 2019, please visit 2019 Fixed Annuity Sales Rankings.