4th Quarter Variable Life Sales Up 18% From 3rd Quarter 2001
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Variable life experienced an upturn in fourth quarter sales as compared to third quarter sales, which is consistent with the seasonality trend that life insurance sales typically exhibit.
Variable life sales with single premiums included at 10% for the 54 companies reporting in Tillinghasts VALUE survey for the fourth quarter of 2001 were $1.49 billion. This is an 18% increase over the third quarter of 2001 and a 23% decrease from the fourth quarter of 2000, which had sales of $1.93 billion.
Full year 2001 sales were $5.8 billion, 15% lower than full-year 2000 sales of $6.87 billion.
(Sales include first-year annualized premium, drop-in premiums and single premiums.)
The market estimate for 2001 with single premiums included at 10% is $5.9 billion.
Variable life sales with single premiums included at 100% for the 54 companies in the VALUE survey for the fourth quarter of 2001 were $1.55 billion. This is an 18% increase over the third quarter of 2001 and a 23% decrease from the fourth quarter of 2000.
The market estimate for 2001 with single premiums included at 100% is $6.25 billion.
For 2001, the top five companies– MetLife/NEF/GenAm/COVA, Hartford Life, IDS Life, Pacific Life, and Equitable–captured 35% of all variable life sales (including single premiums at 10%), while the top 10 companies captured 58% of all sales.
For 2001, Met Life reported the highest annual premiums ($295.2 million). Pacific Life had the second highest with $254.1 million in annual premium sales, although it ranked fourth based on total sales (including single premiums at 10%).
For the companies reporting in the survey, the number of flexible premium contracts issued during 2001 decreased 26% from the number issued during 2000. The average face amount increased 8% to $290,465, while the percentage of premium allocated to the general account remained at 3%.
