Issuance of variable annuity (VA) products in the Japanese market is decreasing to almost symbolic levels, according to SRP data.
Variable annuities are mainly sold in the US and Japanese markets, and offer a minimum payment at the end of their tenor and periodic income payments based on the performance of the underlying asset.
SRP data shows that these products reached a peak in 2009 with 59 issues, but also that issuance has been erratic in the Japanese market, moving up and down year-on-year for the last decade.
Twenty-six issues were captured on the SRP database in 2010 and up to 35 last year, but only 12 issues have been recorded on the SRP database so far this year.
There are still 24 live issues specifically wrapped as variable annuities worth an estimated JPY17tr (US$217bn) out of 94 total issues since 2002. MS&AD Insurance has been the most prolific provider with 36 issues, followed by Hartford Financial Services Group with 32, Manulife on 10, AXA with nine, Aegon three, Allianz two, and Sony Life and MetLife with one each.
There are 89 live continuous products worth JPY205bn (US$2.6bn) wrapped as life insurance products on the SRP database, with Mitsui Sumitomo the most prolific with 70 issues, followed by 43 live products from Dai-Ichi Frontier, 22 from Cardif Assurance Vie and 16 from Allianz.