Equity-Indexed Annuities See Decline.Third-quarter sales of equity-indexed annuities equity-indexed annuity A contract with an insurance company that promises periodic payments keyed in a specified manner to a stock market index. Unlike variable annuities, equity-indexed annuities specify a guaranteed minimum return that is typically 3%. fell 13.1% from the previous quarter to $1.21 billion, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the "Advantage Equity Index Sales & Market Report" issued by The Advantage Group, St. Louis Louis, titular duke of Burgundy Louis, 1682–1712, titular duke of Burgundy; grandson of King Louis XIV of France. He became heir to the throne on the death (1711) of his father, Louis the Great Dauphin. . Sales were also down 5% from the third quarter of 1999. "Very competitive" fixed-annuity rates coupled with an extremely volatile stock market explain the decline, said Jack Marrion, president of Advantage Group, which tracks equity-indexed annuities. Results were based on a survey completed in November November: see month. that included reports from carriers representing 98% of total indexed annuity annuity: see insurance. annuity Payment made at a fixed interval. A common example is the payment received by retirees from their pension plan. There are two main classes of annuities: annuities certain and contingent annuities. production. Sales for the first nine months of 2000 totaled about $4.1 billion, an 11% increase over the same period in 1999. Marrion predicted that sales for all of 2000 would be about the same as for 1999. He said the marketplace was "very stable" in the third quarter with no new carriers entering the market and very few products introduced. He said 44 insurers were offering 177 product variations using 42 different crediting methods. Top Carriers and Sellers Of Equity-Indexed Annuities Of the insurers that produce equity-indexed annuities, here are the top five for the third quarter of 2000: * Allianz/LifeUSA * American Equity * Midland National Life * Jackson National Life Jackson National Life Insurance is a U.S. life assurance company that is a subsidiary of the UK based insurer, Prudential Plc. Founded in 1961, Jackson is headquartered in Lansing, Michigan, and has over a thousand employees in the region. * AmerUS Group The top sellers of equity-indexed annuities Jan. 1 through Sept.30, 2000: * Jackson National Life * American Equity * Allianz/LifeUSA * Conseco Assurance Co. * Midland National Life |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion