Morningstar Advisor - Fall 2008 - 92

By the Numbers: VAs VA Sales Rise, AUM Steady By Frank O’Connor New sales of variable annuities rose in the second quarter, totaling $41.1 billion versus $40.1 billion in the first quarter. For the year to date, new sales ($81.9 billion) lagged year-to-date sales at the end of 2007’s second quarter ($86.9 billion) by 5.8%. The top 10 firms accounted for 71.3% market share year over year versus 70.5% in 2007’s first half. This metric, however, has not consistently risen: In 2006’s first half, the top 10 firms accounted for 71.5% of new sales. Sales of acquired firms are included retroactively. Assets under management were almost flat relative to the end of the first quarter. Assets as of June 30 were $1,406 billion, 0.11% higher than March 31’s $1,404.4 billion. Net flow increased to $7.5 billion compared with $7.2 in the first quarter of 2008, a 4.2% increase. Year over year, however, net cash flow declined 5.8%, to $14.7 billion from $15.6 billion. TIAA-CREF regained the top rank in sales, with an 8.86% new sales market share. Next was Metropolitan Life, which had an 8.63% share. ING came in third, also with 8.63% and only $200,000 behind Metropolitan Life. The quarter’s top nongroup products in terms of sales were ING GoldenSelect Landmark and John Hancock Venture III, both L-share products distributed through all third-party channels, with the strongest sales through independent financial planners and wirehouse firms. Landmark was third in the independent and wirehouse channels; Venture III was first in wirehouse and fifth in independent planner sales. Frank O’Connor is manager of Morningstar’s variable annuity software applications. Sales Rank Contract Name 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 ING USA Annuity and Life Insurance Co GoldenSelect Landmark John Hancock Life Insurance Co (USA) Venture III RiverSource Life Insurance Company RVS RAVA4 Advantage AXA Equitable Life Insurance Co Accumulator Elite 2007 Jackson Natl Life Insurance Co Perspective II Prudential Annuities Life Assurance Corp XTra Credit Six AXA Equitable Life Insurance Co Accumulator 2007 Metropolitan Life Insurance Preference Plus Select Pacific Life Insurance Company Pacific Innovations Select John Hancock Life Insurance Co (USA) Venture (2006) ING USA Annuity and Life Insurance Co GoldenSelect ES II AXA Equitable Life Insurance Co Accumulator Plus 2007 Prudential Annuities Life Assurance Corp APEX II Lincoln National Life Insurance Company American Legacy III View Jackson Natl Life Insurance Co Perspective L Series Pacific Life Insurance Company Pacific Value Pacific Life Insurance Company Pacific Voyages Lincoln National Life Insurance Company ChoicePlus Assur. (L Share) ING USA Annuity and Life Insurance Co GoldenSelect PREMIUM PLUS MetLife Investors USA Insurance Company MetLife Investors Series XC VA Lincoln National Life Insurance Company American Legacy III Allianz Life Ins Co of North America Allianz Vision RiverSource Life Insurance Company RVS RAVA4 Select Fidelity Investments Life Ins Fidelity Growth and Guaranteed Income MetLife Investors USA Insurance Company MetLife Investors Series L-4 Year Hartford Life Insurance Company Leaders 4 Fidelity Investments Life Ins Personal Retirement John Hancock Life Insurance Co (USA) Venture Vantage Hartford Life Insurance Company Leaders Outlook 4 Lincoln National Life Insurance Company Am. Leg. Shareholder's Advan. Genworth Life and Annuity Insurance Co. RetireReady Choice Sun Life Assurance Co of Canada (US) Masters Flex AIG SunAmerica Life Assurance Company Polaris II A-Class Platinum Series AIG SunAmerica Life Assurance Company Polaris Choice III Ohio National Life Insurance Co. ONcore Lite Massachusetts Mutual Life Insurance Transitions Select Prudential Annuities Life Assurance Corp Advisors Plan III New England Life Insurance Co American Forerunner Series MetLife Investors USA Insurance Company PrimElite IV Lincoln National Life Insurance Company ChoicePlus Assur. (B Share) Thrivent Financial For Lutherans Thrivent - Flexible Prem. DVA 2005 Nationwide Life Insurance Co BOA - All American Gold Nationwide Life Insurance Co BOA - America's Future II Lincoln National Life Insurance Company ChoicePlus Assur. (A Share) Lincoln National Life Insurance Company ChoicePlus Assur. (Bonus) ING USA Annuity and Life Insurance Co ING Architect VA Genworth Life and Annuity Insurance Co. RetireReady Selections Prudential Annuities Life Assurance Corp LifeVest II AIG SunAmerica Life Assurance Company Polaris Platinum II Transamerica Life Insurance Company Liberty Data as of June 30, 2008 GMWB Guaranteed Minimum Withdrawal Benefit GMIB Guaranteed Minimum Income Benefit 92 Morningstar Advisor Fall 2008

Morningstar Advisor - Fall 2008

Table of Contents for the Digital Edition of Morningstar Advisor - Fall 2008