2nd Quarter 2001 Variable Life Sales Declined 6% From 1st Quarter
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Variable life sales with single premiums included at 10% for the 55 companies reporting in Tillinghasts VALUE survey for the second quarter of 2001 were $1.49 billion. This is a 6% decrease from the first quarter of 2001 when sales were $1.582 billion, and an 11% decrease from the second quarter of 2000, which had sales of $1.682 billion (sales include first-year annualized premiums, drop-in premiums and single premiums).
The market estimate for the first six months of 2001 with single premiums included at 10% is $3.15 billion.
Variable life sales with single premiums included at 100% for the 55 companies in the survey for the second quarter are $1.55 billion. This is almost a 7% decrease from the first quarter of 2001 and an 11% decrease from the second quarter of 2000. The market estimate for the first six months of this year with single premiums included at 100% is $3.3 billion.
For the first half of 2001, the top five companies– MetLife/NEF/GenAm/COVA, Pacific Life, IDS Life, Hartford and Nationwide–captured 35% of all variable life sales (including single premiums at 10%), while the top 10 companies captured 57% of all sales.
Pacific Life reported the highest annual premiums ($156.7 million) although it ranked second for the year. Also, it should be noted that the survey results consolidate sales for Hartford and Fortis.
For the companies reporting in the VALUE survey, the number of flexible premium contracts issued during the first half of 2001 decreased 25% from the number of contracts issued during the first six months of 2000. The average face amount increased 9% to $277,576, while the percentage of premium allocated to the general account decreased to 2%.
The total premium for the 19 companies participating in VALUE (with 20 single premium products) for the first half of 2001 was $87 million, compared to $93 million in the first half of 2000.
The number of single premium contracts issued during the first half of 2001 was 20% lower than the number issued in the first six months of 2000. The average face amount increased 30% to $233,282, while the average premium increased 18% to $95,336.
