What Has Happen Since 2011?
In 2012, Voluntary/Worksite sales continued to grow with premiums hitting $6,030 billion. Premiums continued to grow in 2013 reaching $6,644 billion, and 2014 exceeded $6,890 billion. 2015 saw more growth with premiums topping $7,138 billion, and 2016 premium hit $7,630 billion. The industry CAGR over the five-year period was 6.17%.
CAGR Since 2011
1. Sun Life – 25.81%
2. MetLife – 22.10%
3. Transamerica – 13.33%
4. Liberty Mutual – 11.99%
5. Principal – 11.94%
6. Guardian – 10.24%
7. Voya – 10.12%
8. Trustmark – 9.96%
9. Lincoln – 9.42%
10. Mutual of Omaha – 8.20%
11. UnitedHealthCare – 7.28%
12. Colonial Life – 5.75%
13. American Fidelity – 5.29%
14. Prudential – 5.12%
15. Unum – 5.00%
16. Cigna – 3.87%
17. The Hartford – 2.12%
18. Allstate – 2.03%
19. Aflac – 0.08%
20. Aetna – (-4.66%)
21. Humana – (-14.09%)
The five-year industry net growth hit $1,973 billion. The following are the top leaders in year-over-year growth;
1. MetLife – $517m
2. Sun Life – $142m
3. Transamerica – 127m
4. Colonial Life – $119m
5. Guardian Life – $118m
6. Unum – $107m
7. Lincoln Financial – $83m
8. Liberty Mutual – $54m
9. Prudential – $51m
10. Principal – $50m
11. Allstate – $44m
12. Voya – $39m
13. Cigna – $38m
14. Allstate – $38m
15. American Fidelity – $35m
16. Trustmark – $31m
17. Mutual of Omaha – $28m
18. UnitedHealthCare – $24
19. The Hartford – $19m
20. Aflac – $6m
21. Humana – (-$58m)
Some of the trends over the last five-years are;
1) MetLife has clearly made a big bet and investment in the voluntary/worksite industry, and it is paying off. They, like other carriers, have invested in their voluntary platform and have benefitted from having a large base of traditional core voluntary clients to cross-sell worksite to. MetLife has seen double-digit growth in the jumbo size employers with 25% of the clients being employers with 5,000+ employees. MetLife’s market share grew from 5.30% in 2011 to 10.70% in 2016.
2) Aflac remains the leader in new premium written each year and in market share, but their market share continues to fall. In 2016, it fell to 19.42% from 26.09% in 2011.
3) Cigna is the largest writer of voluntary/worksite of the major medical carriers with about 3.8% market share with Aetna at about 1.7%, UnitedHealthCare at slightly over 1%, Humana at about 0.8% market share and Anthem barely over 0.4%.
4) Group products continues group out-pace individual products. In 2011, group was 55%, and individual was 45%. Last year, group products was 70%, and individual was 30%.
5) Takeover business continues to increase and accounted for almost 54% last year compared to about 42% in 2011.
CAGR for Products Since 2011
Critical Illness continued its growth since 2011 with a CAGR of 18.05% to lead all products.
Term Life – 11.89%
Dental – 11.30%
LTD – 10.09%
STD – 5.85%
Accident – 5.38%
UL/WL – 1.91%
Hospital Indemnity – (-2.80%)
Cancer – (-4.03%)
