The indexed annuities market is likely to easily find capacity to replace Aviva if the second largest factor in the equity-index annuity market decides to shrink or change its role in the U.S. insurance marketplace.
Benefitting from the tail winds generated by low interest rates and concerns about the stock market, comments by industry officials and even the data buttress the view that the EIA space is robust given current economic conditions.
The issue is an important issue for the indexed annuities industry, which has shown steady growth over the past four years.
According to data compiled by Beacon Research, Aviva is the No. 2 player in terms of market share for the EIA market, with $1.2 billion in sales in 2011. Allianz held the top spot, with sales of $1.436 billion in sales in 2011.
Data compiled by LIMRA shows that in 2011 EIA sales were $32.2 billion, and that the top 5 players had 57 percent of the market. According to LIMRA, the top 10 EIA underwriters held 79 percent of the market.
