State-By-State Fixed Annuity Sales Study
2016State-By-StateFixed AnnuitySales Study
Dear Premier Partner,This is the fifth annual State-By-State Fixed Annuity Sales study for spring 2017compiled by Dr. Jack Marrion. This original research, completely unique to NAFA,shows the estimated 2016 fixed annuity sales for each state. To verify the aggregate2016 fixed rate, fixed index and fixed immediate annuity sales, the BeaconResearch Fixed Annuity Premium Study was used, as well as the U.S. IndividualAnnuities Sales Survey, LIMRA. An original aspect to this study is the creationof an Annuity Market Power Ranking (page 7) that takes into account both statepopulation and per capita sales.It also provides valuable insight and raises important questions regarding relativestate markets, where to allocate annuity marketing resources, and where additionalconsumer education may be necessary.Key Findings: 108 billion of fixed annuities purchased in 201698% of all fixed annuity purchases are by Americans age 45 or olderUtah & Rhode Island lead the nation in fixed annuity purchasesThose over age 65 represent over half of all fixed annuity purchasesSize of the market doesn’t directly translate into the annuities purchased due todifferences in annuity buying Consumers in states with a per capita number greater than 1.00 buy moreannuities and those in states with a number lower than 1.00 buy fewerannuities or have lower average sales sizesWe are committed to providing you with unprecedented resources and knowledgeand we hope you find this exclusive information useful to your business. Pleasefeel free to contact me if you have any questions regarding this study.Sincerely,Charles “Chip” AndersonNAFA Executive Director
2016 Fixed Annuity Sales State-By-State &Age-Weighted FactorsThis report is based on an analysis of Annual Statements filed by fixed annuity carriers withregulators and then pulling out the individual state-by-state annuity sales under Schedule Twithin those statements. The selected carriers represented 85.2% of fixed annuity production.To verify the aggregate 2016 fixed rate, fixed index and fixed immediate annuity sales theBeacon Research Fixed Annuity Premium Study was used, as well as the U.S. Individual AnnuitiesSales Survey, LIMRA.2016 Total Fixed (deferred & immediate) Annuity i 1,486,125,072 255,345,177 2,525,942,574 752,302,424 11,554,557,507 2,307,781,734 1,733,486,142 151,004,159 664,089,148 8,278,435,542 2,876,939,989 729,995,482 445,351,309 3,994,381,720 2,401,353,309 1,292,073,214 881,468,903 1,191,872,075 1,529,647,115 558,664,873 1,844,219,021 3,077,898,141 4,371,808,615 1,919,956,286 704,271,438 2,765,544,463MontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth est VirginiaWisconsinWyoming 264,293,809 614,049,061 745,826,118 666,756,885 3,853,616,549 625,910,690 2,627,360,264 3,228,292,525 401,562,707 4,302,925,992 969,464,310 978,228,443 5,477,422,516 746,250,984 1,712,315,714 338,969,092 2,150,284,099 7,303,275,877 1,652,520,857 350,059,836 2,576,457,240 2,099,377,059 653,528,235 1,872,625,398 238,285,832I have high confidence that the percentages and sales results for overall fixed totals reflectactual sales by state. The numbers are extrapolated from actual state-by-state sales taken fromthe individual Annual Statements of carriers that account for 85.2% of overall fixed annuitysales. After adjusting for qualified sales of carriers that listed the State of the Custodian as thestate of sale, the Pearson correlation coefficient tested for those carriers where variable saleswere deducted to arrive at fixed only sales were all over .93 generating high confidence inthe final results. 1 Copyright 2017. NAFA Annuity Research is published by the National Association for Fixed Annuities. All rights reserved.
Total Sales by State as a Percentage Of Total Fixed Sales*Top 101. California2. Florida3. Texas4. Pennsylvania5. Ohio6. Michigan7. Illinois8. New Jersey9. North Carolina10. DelawareBottom 1042. Mississippi43. Idaho44. Maine45. North Dakota46. Vermont47. South Dakota48. Montana49. Alaska50. Wyoming51. 12%*Based on 35 carriers representing 85.2% of fixed annuity sales, with fixed sales representing 100% of statebreakdown unless otherwise noted: AIG (54%), Allianz (85%). American Equity, American National, Americo,Athene, Bankers Life, Delaware, Eagle Life, Equitrust, F&G Life, Forethought (92%), Great American (99%),Guggenheim, Integrity, LSW, Lafayette, Liberty Life, Mass Mutual (75%), Midland National (93%), NationalWestern, New York Life/NYLIAC (78%), North American, Pacific Life,/Pacific Life & Annuity (59%), Phoenix,Protective (58%), Reliance Standard, Sagicor, Security Benefit (94%), The Standard, State Farm Life, Symetra (99%)and Voya (98%).I have high confidence that the percentages and sales results for fixed annuity sales (fixed rate,index, immediate) are reflective of actual sales by state.Percentage of Annuity Sales By State12.00%9.00%6.00%3.00%AlabAl ama aArAriz skaka onC n aal saC Co ifor son lo nine rad ac oD ticuel D taw CFl areG or ie dH or g aaw iaId aiiIl ahIn linoodi isaKaIownaKe n aLo nt usasui cks yMas M Miansa ar ai ach y l neaM us ndM ichettsM inn igais es ns oM iss taM issoippioN Ne nt auriew b nrH N as aN ameva kaeN w ps daew Je hirN N Merse eor e x yt h w icN C Y oor a oth ro rkD lina aO kokl O taPe ah hioO oR nn r mSo ho syl eg o au d v nSot h e I saniaut Ca laTeh Droli ndnn ak naes otaTeseexVe U a strW m ahW a sVirg one s hi in tt n iW Vir gtoais g nW coniniay o sim ning0.00%20152016 2 Copyright 2017. NAFA Annuity Research is published by the National Association for Fixed Annuities. All rights reserved.
Senior Age & State Annuity SalesAt the start of 2016 there were 47.8 million Americans age 65 or older, approximately 15% ofthe population (Source: U.S. Census Bureau, Population Division).Population Age 65 Or Older – Start of 2016CaliforniaFloridaTexasNew YorkPennsylvaniaOhioIllinoisMichiganNorth CarolinaNew aSouth piKansasNevadaWest VirginiaNew MexicoUtahNebraskaMaineIdahoHawaiiNew HampshireMontanaRhode IslandDelawareSouth DakotaVermontNorth ,515134,420109,893107,28184,69977,00472,837Those over age 65 represent over half of all fixed annuity purchase, based on average agescollected by the various reporting services.Total State Annuity SalesBased on analysis of sales breakdowns by age reported by a few carriers, taking into account403(b) deposits by educators, and relying on a bit of intuition, those age 45 or older appear toaccount for 98% of all fixed annuity purchases. Therefore, the percentage of state populationage 45 or older – which would include those over age 65 – represents pretty much the entirepool of annuity buyers. The total population by state age 45 or older is as follows: 3 Copyright 2017. NAFA Annuity Research is published by the National Association for Fixed Annuities. All rights reserved.
Population Age 45 Or Older – Start of 2016*CaliforniaTexasFloridaNew YorkPennsylvaniaIllinoisOhioMichiganNorth CarolinaGeorgiaNew doSouth nsasMississippiNevadaKansasUtahNew MexicoWest VirginiaNebraskaMaineIdahoNew HampshireHawaiiRhode IslandMontanaDelawareSouth DakotaVermontNorth 7,057224,186*Since Delaware is the custodian for many qualified plans the Delaware sales total to a great extent reflectsannuity buyers in other states. Since I can’t unravel the sales figures I have said Delaware sales are reflect thenational average.Per Capita Annuity SalesAt the start of 2016 there were 131,826,832 Americans age 45 or older. In 2016 there were 108 billion of fixed annuities purchased – this total does not include structured settlementsor structured notes. On a per capita basis this works out to 815 of annuities purchasedby each age 45 American. However, Utahans bought 1.65 billion of annuities last yearand there are 902 thousand residents that are age 45 or older – on this basis the per capitapurchase was 1,833. By contrast, New Mexicans bought 0.63 billion of annuities andthere are 860 thousand age 45 plus – the per capita sale works out to 728. In other words,it appears the average Utahan bought more than double the annuities that the averageNew Mexican purchased. Clearly the residents of some states have demonstrated a greaterproclivity for annuities than others. 4 Copyright 2017. NAFA Annuity Research is published by the National Association for Fixed Annuities. All rights reserved.
I calculated the sales per capita by dividing total state annuity sales for each state by thepopulation age 45 or older. I then divided the state’s average sale by the national average todetermine what percentage of the state’s per capita sales were above or below the nationalaverage to create the annuity buying factor. People in states with a factor greater than 1.00buy more annuities than the national average and those in states with a number lower than1.00 buy fewer annuities (or have lower average sales sizes) than the national average. Thefollowing chart reflects this.0.55New 760.77 OklahomaNevada0.780.79 KentuckyDC0.830.85 Idaho0.88 Washington0.89 Alabama0.89 New Mexico0.90 Georgia0.91 Maryland0.92 Texas0.92 Wisconsin0.93 Virginia0.94Kansas0.94Illinois0.94 West VirginiaCalifornia0.940.95 North Carolina0.95 TennesseeDelawareNebraskaSouth rizonaPennsylvaniaSouth DakotaAlaskaIowaNew JerseyWyomingMichiganMassachusettsNew orth DakotaRhode IslandUtahState Annuity Buying Factor(1.0 National 1.511.701.972.25 5 Copyright 2017. NAFA Annuity Research is published by the National Association for Fixed Annuities. All rights reserved.
How to read the chartIt turns out the per capita annuity purchase of a Missourian was 32% bigger (1.32) than theaverage U.S. purchase and the purchase for a Marylander was 9% less (0.91). What this meansis either more Missourians buy fixed annuities than Marylanders or the average annuity saleto a Missourian is considerably larger than the sale to a Marylander or both. Consumers instates with a per capita number greater than 1.00 buy more annuities and those in states witha number lower than 1.00 buy fewer annuities or have lower average sales sizes. Is this meaningful? Yes, as a part of the answer.Both Maryland and Missouri have a similar population of people age 45 or older – 2.5 million.Since the target population is roughly the same, but Missouri spends 32% more on annuitiesper capita than the national average and New Mexico spends 9% less, then the people of Missouri buy a lot more fixed annuities ( 2.8 billion in 2016) than do the people of Maryland ( 1.8billion in 2016). If you had limited marketing dollars it appears that Missouri would be a betterplace for those dollars. However, you can’t use the per capita number alone.Hawaii has a per capita annuity number of 1.45. Georgia has one of 0.9. On an individual basisHawaiians buy 60% more annuities, but Georgia has over seven times the number of potentialannuity buyers, which translated into Georgians purchasing 3 billion of fixed annuities andHawaiians buying 0.7 billion in 2016. What this means is one should look at both the per capita sales and the buying population to determine which states are the most attractive annuitymarketing targets.Annuity Market Power RatingFor pure fixed annuity market power one can’t ignore the giant states with large populationsof potential annuity buyers. California, Florida, Texas and Pennsylvania have the largest populations and did over 33 billion in fixed annuities last year. However, as indicated by the Maryland and Missouri example, the size of the market doesn’t directly translate into the annuitiespurchased due to differences in annuity buying.The chart on the next page attempts to show the relative annuity market power rating ofeach state by multiplying the per capita sales represented by the annuity buying factor by theover age 45 population of the state. To adjust for magnitude the population is multiplied by0.0001%. The resulting number is an indication of the state’s annuity market power.For example, California’s 45 and older population is thirteen times larger than Kansas, andsince each state has an annuity buying factor of 0.94 the annuity market power rating of California is 13 times larger (14.17/1.08). The annuity market power rating reflects size of market.However, Maryland and Missouri have the same 45 populations, but a difference in annuitybuying factor resulting in more sales in Missouri. This is reflected with Missouri showing anannuity market power rating of 3.39 and Maryland rated at 2.26. The annuity market powerrating shows that Missourihas in the past been a stronger market for fixed annuities. 6 Copyright 2017. NAFA Annuity Research is published by the National Association for Fixed Annuities. All rights reserved.
The annuity market power rating is not intended to be the only answer in how to allocateannuity marketing resources, but it is sufficiently sophisticated to suggest annuity advertisingdollars might be better spent in, say, Utah rather than Mississippi, even though Mississippi hasa larger population.Annuity Market Power hioIllinoisNew JerseyNew YorkNorth sinMarylandConnecticutSouth homaKansasArkansasRhode IslandNevadaHawaiiMississippiNew HampshireWest VirginiaNew MexicoNebraskaMaineIdahoNorth DakotaVermontSouth 750.690.550.490.430.420.340.320.310.290.22 7 Copyright 2017. NAFA Annuity Research is published by the National Association for Fixed Annuities. All rights reserved.
2016 Fixed Annuity Sales BreakdownOver 5.5 Billion* 1 - 2.5 Billion 2.5 - 4.4 BillionUnder 1 Billion*No state had sales between 4.4 and 5.5 billionCopyright 2017. NAFA Annuity Research is published by the National Association for Fixed Annuities, All rightsreserved. NAFA does not provide investment, tax, or legal advice. The information contained herein is believedaccurate but is not warranted. NAFA Annuity Research is intended for use by NAFA members only. Distribution orreproduction of all or any part of this publication is prohibited without the express written permission of NAFA. 8 Copyright 2017. NAFA Annuity Research is published by the National Association for Fixed Annuities. All rights reserved.
Dear Premier Partner, This is the fifth annual State-By-State Fixed Annuity Sales study for spring 2017 compiled by Dr. Jack Marrion. This original research, completely unique to NAFA, shows the estimated 2016 fixed annuity sales for each state. To verify the aggregate 2016 fixed rate, fixed index and f
simultaneously. One of these annuities is Annuity Care II from The State Life Insurance Company. How it works Annuity Care II is a single premium fixed interest deferred annuity that combines long-term asset growth and LTC benefits. This protection is built-in to the annuity, providing a combination of the annuity
Regardless of index performance, indexed annuity contract values will not be impacted by negative index returns. Keep in mind that: A fixed indexed annuity is not a stock market investment and does not directly participate in any stock or equity investment. A fixed indexed annuity may be appropriate for individuals who want the .
a summary of the Annuity Plan. The Annuity Plan is ruled by the Annuity Plan document. If there is any conflict between this Summary and the Annuity Plan document, the Annuity Plan document will apply. You can obtain a copy of the full Annuity Plan document by a written request to the Fund Office.
Ordinary Deferred Annuity - when deferral period ends one payment interval before the first periodic payment. The future value of a deferred annuity - is the accumulated value of the stream of payments at the end of the annuity period. This is the same procedure as future value of an ordinary annuity (both simple and general annuity).
Fixed Annuity: This one earns a steady interest rate — typically from 1% to 4% - for a fixed period of time. The longer the term, the higher the earning percentage. The insurance company holds your money and pays you part of its earnings in exchange for the use of your money. Immediate Annuity: This is a type of Fixed Annuity that can immediately
Charitable Gi t Annuity LEAD TRUST PAYOUTS A lead trust makes payments to charity in one of two ways: Lead Annuity Trust With a lead annuity trust, the trust pays a fixed amount each year regardless of the current value of the trust. There is a potential for growth in the trust because the annuity is fixed and the trust principal can compound.
An annuity protects and potentially builds your savings, with the option of converting them into scheduled income payments for retirement. If you're interested in an opportunity to grow your savings based on a market index-without the risk of actually participating in the market-a FIXED INDEXED ANNUITY may be a good choice for you.
ASME B31.8 Gas Transmission and Distribution Piping Systems ASME B31.9 Building Services Piping ASME B31.11 Slurry Transportation Piping Systems ANSI/AGA Z223.1 National Fuel Gas Code (same as NFPA 54) AWWA C 100 Cast-Iron Pipe, Fittings AWWA C 200 Steel Pipe AWWA C 300 Concrete Pipe AWWA C 400 Asbestos Cement Pipe AWWA C 500 Valves and Hydrants AWWA C 600 Pipe Laying AWWA C 900 PVC Pressure .
