Strong Variable Annuity Sales Drive Third Quarter Retail Sales Up 44Percent Year Over Year
Oct. 28, 2009 (Business Wire) -- During the third quarter of 2009, Jackson National Life Insurance Company® (Jackson) generated record retail sales and deposits of $4.3 billion, an increase of 28 percent over the second quarter of 2009, and 44 percent higher than the third quarter of 2008.1 The third quarter of 2009 was the second consecutive quarter during which Jackson set a retail sales record. Retail sales and deposits during the first nine months of 2009 of $10.4 billion were up 17 percent over the same period in 2008.
"Given the significant disruption in the US annuity market brought about by the financial crisis, advisers and their clients are increasingly placing business with providers that have demonstrated financial stability and consistency in their product suite,” said Clark Manning, Jackson’s president and chief executive officer. "Jackson has clearly benefited from this flight to quality."
During the first nine months of 2009, Jackson, an indirect wholly owned subsidiary of the United Kingdom’s Prudential plc (NYSE: PUK), generated $6.7 billion in variable annuity (VA) sales, a 32-percent increase from the $5.1 billion recorded during the same period of 2008. Third quarter VA sales increased 93 percent year over year to more than $2.9 billion, a company record.
Jackson ranked fourth in new VA sales during the second quarter of 2009, with a market share of 7.2 percent, up from a ranking of 12th and a market share of 4.3 percent during the second quarter of 2008.2 During the first half of 2009, Jackson ranked second in variable annuity net flow (total premium minus surrenders, exchanges and annuitizations) and had the lowest outflows, as a percentage of VA inflows, in the industry.3
Fixed index annuity (FIA) sales of $1.6 billion during the first three quarters of the year were more than double the $617 million recorded during the first nine months of 2008. Jackson's third quarter FIA sales of $769 million were the highest quarterly total in company history. Sales of traditional fixed annuities during the first nine months of 2009 were $1.3 billion, compared to $2.2 billion during the same period of the prior year.
"The annuity industry is consolidating to the strongest players, and this consolidation has contributed to a substantial increase in Jackson's distribution relationships," said Clifford Jack, executive vice president and chief distribution officer for Jackson. "We've experienced a large influx of new advisers this year, which has driven significant increases in market share for Jackson, particularly in variable annuities."
During the first nine months of 2009, Jackson appointed nearly 18,000 new advisers to sell its products, up 43 percent over the same period in 2008. Jackson has also reached a distribution agreement with Merrill Lynch, which commenced in October 2009.
In September, Standard & Poor's was the fourth rating agency to affirm Jackson's financial strength ratings in 2009. In March, Moody's Investors Service and Fitch Ratings affirmed Jackson's financial strength ratings, and A.M. Best affirmed Jackson's financial strength rating in July. Jackson has maintained the same financial strength ratings for more than six years. As of September 30, 2009, Jackson was rated:
