Pension Sales See Double-Digit Gains.

Insurers posted double-digit sales gains for institutional pension and nonqualified stable-value products in 1999, according to Limra International's recent U.S. Institutional Pension Sales and Assets Survey.

The survey of 31 insurers found that total annualized new business rose by 18% last year, the third consecutive year of double-digit gains. Total deposits received rose 14%. Assets under management grew by nearly 6%, while assets not managed by the company jumped 24%.

The rapid growth of assets not managed by the company indicates the increasing popularity of outside advisers and funds, said Karen West-Federico of Limra's Benefits Marketing and Research and a co-director of the project with Anita Potter.

Sales increased across all product lines, with guaranteed products posting some of the largest increases. The volatility of the stock markets caused investors to reconsider investments in guaranteed products, West-Federico said. Also, investors have more discretionary money to invest as a result of the booming economy. Federico-West said people allocated higher percentages of their pay to 401(k) plans, and they are more educated about the virtues of asset allocation.

Survey participants, which included many of the largest in the United States, reported more than $91 billion in annualized new business, more than $96 billion in total deposits received and more than $622 billion in assets managed by the company in the qualified and nonqualified institutional pension lines. Assets not managed by companies grew to almost $77 billion.

Company initiatives in the 401(k) survey included acquisitions of financial-services firms, joint ventures, alliances and technological innovations, many of which were Internet-based.

According to the Investment Company Institute, Washington, 401(k) assets reached an estimated $1.41 trillion by the end of 1998, or about 13% of the U.S. retirement market. The 401(k) plans grew an average of 18% per year from 1990 to 1998.