WINDSOR, Conn., March 13,
2014 — After three consecutive years of positive growth,
individual life insurance new annualized premium growth was flat in
Individual life insurance new annualized premium fell 8 percent
in the fourth quarter, erasing the first half of the year's growth.
"The drop in individual life insurance premium was primarily
driven by a 51 percent decline in lifetime guarantee UL (LTG UL)
premium in the fourth quarter," said Ashley Durham, senior research
analyst, LIMRA Insurance Research. "However, given the sharp
increase of LTG UL sales at the end of 2012 ahead of the new
regulatory reserving requirements, the decline was not
Total individual life insurance policy count fell 4 percent for
the quarter and 3 percent for the year, ending the 2 years of
positive policy count growth (in 2011 and 2012).
Total universal life insurance (UL) new annualized premium was
23 percent lower in the fourth quarter, compared to prior
year. In 2013, UL new annualized premium was down 7 percent.
In 2013, UL held 38 percent of the total individual life
Indexed universal life (indexed UL) improved 1 percent in the
fourth quarter, ending 2013 up 13 percent and recording the
greatest increase in absolute dollars compared to other product
lines. In 2013, indexed UL represented a record 35 percent of UL
premium and 13 percent of total life insurance premium.
Variable universal life (VUL) jumped 36 percent in the fourth
quarter, increasing 24 percent in 2013. Two thirds of
VUL writers reported increases compared with 2012. At
year-end, VUL represented 5 percent of new premium market
Whole life sales remained steady with new annualized premium
growing 3 percent in the fourth quarter - the 18th consecutive
quarter of positive growth. For the year, WL premium rose 4
percent. WL enjoyed the second biggest increase in absolute
dollars in 2013 and represented 35 percent of the total individual
life insurance market.
Term premium fell 1 percent in the fourth quarter, resulting in
a 3 percent increase in 2013. About half the term writers
increased their sales in 2013. Term's market share remained
steady at 22 percent in 2013.
View the latest data table on U.S. life
insurance sales trends. For more statistics, visit the newly
updated Data Bank.
Catherine Theroux, 860-285-7787, firstname.lastname@example.org
Mark Morris, 860-285-7875, email@example.com
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