Retirement
As of December 31, 2009
Securian’s financial strength and our diversified retirement distribution strategy – particularly alliances with new partners – were key to achieving Retirement sales of nearly $1.3 billion in 2009. Individual annuity sales were $836 million and employer plan sales were $444 million. Collected premium totaled $2.1 billion and net cash flow was $512 million, a new record. Retention of Retirement business, measured in assets, was 93 percent for individual annuities and 94 percent for employer plans – both strong results.
In the individual annuity market, we benefited from the flight to quality companies caused by the turbulent economy. Sales of noninstitutional fixed annuities more than doubled, increasing 135 percent. Demand for our Secure Option Select CD-style annuity led the way and our new immediate annuity, IncomeToday!®, contributed to that success.
Annuity sales by advisors increased 38 percent in 2009, and new sales records were set by two of our distribution channels – independent broker-dealers, and independent marketing organizations. The institutional annuity business that comprised 29 percent of 2008 sales declined to one percent in 2009 as institutional investors withdrew from this market.
Our new Guaranteed Minimum Income Benefit option, available on our individual variable annuities, as well as the introduction of our new retirement income initiative, Retirement GPS: Keeping Your Dreams on Course,™ positions us well for future sales opportunities.
In the employer plan market, the challenging economic environment and high unemployment dampened demand for new plans, particularly among small employers, and reduced deposits in existing 401(k) plans. Distribution through non-advisor and other channels accounted for 83 percent of total sales in 2009. Collected premium totaled $1.3 billion for the year, and we served 3,000 plan sponsors and 216,000 plan participants.
Despite the tough market, our success in maintaining our role as a trusted provider was reflected in the ongoing adoption of our asset allocation tools – TargetAge™ and ExpressInvest™ – by 401(k) plan sponsors and participants. In 2009, we rolled out Retirement Success Accounts™ designed to help participants changing jobs or retiring retain their accumulated savings while offering the expense flexibility plan sponsors seek for keeping these participants under the plan.
In 2009, our surveys showed that 99 percent of individual annuity customers rated our service excellent or good, and 96 percent would recommend us. Ninety-seven percent of our employer plan sponsors were satisfied with our overall service, and 94 percent would recommend us.
