3rd Quarter Variable Life Sales
Off 26% From 3rd Quarter 2000
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Variable life sales with single premiums included at 10% for the 56 companies reporting in Tillinghasts VALUE survey for the third quarter of 2001 were $1.26 billion. This is a 15% decrease from the second quarter of 2001 and a 26% decrease from the third quarter of 2000, which had sales of $1.712 billion. (Sales include first-year annualized premiums, drop-in premiums and single premiums.)
The market estimate for the first nine months of 2001 with single premiums included at 10% is $4.4 billion.
Variable life sales with single premiums included at 100% for the 56 companies in the VALUE survey for the third quarter of 2001 were $1.32 billion. This is a 15% decrease from the second quarter of 2001 and a 26% decrease from the third quarter of 2000.
The market estimate for the first nine months of 2001 with single premiums included at 100% is $4.65 billion.
For the first nine months of 2001, the top five companies– MetLife/NEF/GenAm/COVA, Hartford Life, IDS Life, Pacific Life, and Nationwide–captured 36% of all variable life sales (including single premiums at 10%), while the top 10 companies captured 58% of all sales.
For the first nine months of 2001, Met Life reported the highest annual premiums ($211.2 million), while Pacific Life was second ($208.2 million).
For the companies reporting in the survey, the number of flexible premium contracts issued during the first nine months of 2001 decreased 24% from the number issued during the first nine months of 2000. The average face amount decreased 9% to $281,715, while the percentage of premium allocated to the general account decreased to 3%.
The total premium for the 18 companies participating in VALUE with 19 single premium products for the first nine months of 2001 was $141.4 million, compared to $139.1 million in the first nine months of 2000.
The number of single premium contracts issued during the first nine months of 2001 was 10% lower than the number issued in the first nine months of 2000. The average face amount increased 13% to $189,469, while the average premium increased 13% to $83,570.
