Annuity sales increased 16% in the first quarter, reaching $60 billion, with variable annuity sales leading the way with a 24% increase in sales over the same period last year.
Fixed annuities showed a 5% increase over first-quarter 2010, reaching $20.2 billion, according to LIMRA’s first quarter 2011 Annuity Sales Survey. The fixed-annuity growth was a result of fixed–rate deferred products, which were up 10%, compared to prior year.
Sixteen of the top 20 variable annuity companies saw sales increases from the prior year, setting a “good pace” for the year, according to LIMRA officials. The top-three companies saw record sales for a second straight quarter
“Strong VA sales, which recorded $39.8 billion in the first quarter, were the main driver of the overall annuity growth,” said Joseph Montminy, LIMRA assistant vice president, annuity research. “They benefited from the positive equity market trend and consumers putting money back into the market.”
Book-value sales recovered in the first quarter, growing 10% year-over-year and 32% from the prior quarter. Interest rate spreads improved making fixed annuities more attractive compared to comparable investment products, like CDs, officials said.
Market-Value Adjusted (MVA) sales also increased, up 8% in the first quarter.
Indexed annuities remained steady in the first quarter, rising 1% from the prior year. After reaching record levels in the $8 to $9 billion range for most of 2010, indexed annuities settled back to the $7 billion level in the first quarter.
Variable annuities set pace for 16% overall rise in annuity sales via IFAwebnews.com .
No related posts.