Fourth Quarter Surge: John Hancock Tops Individual Life Insurance Sales for Second Year in a Row |
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Written by U.S. Insurance News
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Monday, 03 March 2008 |
Maybe it was the new products the company unveiled. Maybe it was the emphasis that the company placed on variable universal life. Or maybe it’s because the company enjoyed its best financial quarter in history.
Whatever the reason—and it was surely attributable to multiple causes—2007 was a banner year for John Hancock.
For the second year in a row, John Hancock led the industry in total individual life insurance sales, according to a recent survey of 78 major life insurers by LIMRA International.
LIMRA’s survey shows that John Hancock increased sales in 2007 to $846 million in total annualized premium, a 14.9 percent increase over the previous year—nearly doubling the industry’s growth rate of 7.6 percent. Also, the company raised its industry-leading market share to more than seven percent.
According to Steve Finch, president of John Hancock Life Insurance, the company ended the year with the strongest quarter in its history.
“What is particularly noteworthy is the strength of our sales across our entire product portfolio,” he said.
Finch pointed out that over the last two years, his company overhauled its portfolio. “In 2007 alone, we launched 10 new products. The strength of sales across the portfolio clearly demonstrates that this effort, as well as our service enhancements and underwriting expertise, are meeting the needs of our producers and clients.”
John Hancock finished first in the industry in variable life (including variable universal life) sales, which rose to approximately $234 million, up nearly 30 percent, LIMRA said. Industry-wide sales increased 6.6 percent.
“We put a strong emphasis on variable universal life in 2007, believing that our revamped products are well designed to meet client needs through all kinds of market environments,” Finch explained. “We are confident that even with the market volatility we have seen over the past few months, variable universal life will remain an attractive and appropriate product for producers and clients.”
According to LIMRA, universal life sales increased 7.5 percent, to $542 million. It was the only John Hancock product line that did not increase by more than 20 percent in 2007.
Strengthened by new products introduced early in the year, whole and term life sales increased 125 percent and 24 percent, respectively.
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