Positioned to Win with
Banks/Credit Unions and
Regional Broker Dealers
Brad Powell
President
Institutional Marketing Group
Bank Marketplace History
(Bank Premium as a Percentage of Total Industry Premium)
24
Annuity Premium (%)
22
20
18
16
14
12
1997
1998
1999
2000
Year
*Data through June 2002
Source: Kehrer & Associates
2001
2002*
Industry Wide Bank Annuity
Premium
(In Billions)
45
40
35
30
25
20
15
10
5
0
1997
1998
1999
Fixed Annuities
*Data as of June 2002
Source: Kenneth Kehrer Associates
2000
2001
Variable Annuities
2002*
Total Bank Annuity Industry
Rankings - 2001
Fixed Annuities
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
AIG/American General
Aegon/Transamerica
GE Companies
Nationwide
Allstate Life Group
Jackson National Life
Keyport
John Hancock
Lincoln National
Western-Southern
Source: Kenneth Kehrer Associates
Total Annuities
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
AIG/SunAmerica
Aegon/Transamerica
Hartford
Nationwide
GE Companies
Allstate Life Group
Keyport
Jackson National
John Hancock
Lincoln National
Industry Rankings:
Fixed & Total Annuities – Through Second Quarter 2002
Fixed Annuities
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
AIG/American General
Aegon/Transamerica
John Hancock
Nationwide
Allstate Financial
GE Companies
SunLife / Keyport
Jackson National Life
Lincoln National
Hartford
Source: Kenneth Kehrer Associates
Total Annuities
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
AIG/SunAmerica
Aegon/Transamerica
Hartford
Nationwide
John Hancock
Allstate Financial
SunLife Financial/Keyport
GE Companies
Jackson National
Lincoln National
Proprietary vs. Private Label
Proprietary Annuity:
▲
Bank manages the underlying assets
associated with the product sold
– Fixed income for fixed annuities
– Sub-account funds for variable annuities
Private Label Annuity:
▲
Insurance company modifies or creates annuity
to fit particular needs of the bank, without bank
management of assets
History Of IMG
Premium ($000)
Number of Licensed Reps
1,600
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
1,400
1,200
1,000
800
600
400
200
0
1997
1998
1999
Premium
*Sales through June 2002
2000
2001
Rep Counts
2002*
Reasons For Success
▲
Commitment to a broad and
competitive product line
▲
Flexible delivery style
▲
Service
Flexibility
▲
Dedicated advisors
▲
Platform representatives
▲
Hybrid sales force
Typical Success Story
Community First Bank
▲ 6 week bank-wide JNL-sponsored
marketing campaign
▲ $28.4 million in fixed and variable
annuity sales
▲ Previous annuity sales non-existent
Key Issues
▲
Consolidation/sales
▲
Proprietary products vs. private
label
▲
Revenue sharing/margin pressure
▲
Shrinking universe
Future: Banks Are Where The
Money Is
▲
▲
Results from a recent survey concluded
more bank customers are seeking
financial advice from banks
Banks are uniquely positioned to service
the largest U.S. affluent segment – The
Mass Affluent:
– 5 Million households
– $3.7 Trillion in investable assets
Source: Cerulli and Associates