Equity-Indexed Annuity Sales Surpassed $5 Billion in 1999.

For the first time, sales of equity indexed annuities in a single year topped $5 billion, according to Advantage Group, St. Louis. The $5.16 billion sold in 1999 was up 24.7% from 1998.

Jackson National Life Insurance Co., Lansing, Mich., topped the sales list for the first time with $728.5 million, an increase of 54.1% over 1998. Americo, which owns Great Southern Life Insurance Co., entered the market strongly with a product that combines an asset fee and a participation rate, said Jack Marrion, president of Advantage Group. That combination, along with attractive compensation, has attracted agents' attention, he said.

Some 45 carriers offered 137 different indexed annuities in March, Marrion said. He said 14 new indexed annuities soon would be introduced.

A major trend in the industry is the use of indices other than the S&P 500. Marrion said nine market indices were being used in whole or in part. The products, which promise to protect principal or produce small guaranteed gains if left untouched for the full term, can generate higher returns linked to a particular stock index.

He said more than $15 billion worth of contracts are in place in the product's first five years, the fastest growth of any new insurance product.