John Hancock, the Boston unit of Toronto's Manulife Financial Corp., said Tuesday that it had sold $1.75 billion of variable annuities in the second quarter, a 17% increase from the first quarter and a 4% hike from the year earlier.
Hancock said it expects this growth will prove to have outpaced general sales growth in the variable annuity market during the quarter.
Based on current trends, Hancock said, it expects to maintain variable annuity sales growth during this quarter.
Sales rose dramatically in June, the company said, after the introduction the previous month of the Principal Plus for Life, or PPFL, withdrawal benefit. June sales set a record for Hancock's variable annuity business. Eighty-six percent of June business in Hancock's Venture variable annuity elected the PPFL rider, the company said.
The withdrawal benefit can give clients a guaranteed income they cannot outlive, the insurer said, and dispenses with the complex limitations usually associated with annuitization.
Hancock's Lifestyle mutual funds were selected by 63% of variable annuity buyers in the quarter, up from 55% during 2004.
