Retirement Income Journal
The information forum of the decumulation industry.

A sales surge by MetLife—whose market share jumped 4.5 points, to over 22%--helped the variable annuity industry to a strong third quarter. Overall, the industry is on pace to break $150 billion in sales for the first time since 2006, according to Morningstar’s quarterly VA report.

MetLife’s $8.56 billion in sales in the third quarter and its sales of $6.97 billion in the second quarter were the highest and second highest quarterly VA sales ever. But MetLife has since reduced the rich deferral bonus on its GMIB, so demand for its product should slow down.

The other big news was a jump in net cash flow. “A very bright spot in the third quarter data was the significant increase in net cash flow, to $8.9 billion from $5.7 billion in the second quarter and $6.4 billion in the third quarter of 2010, increases of 54.3% and 38.4% respectively,” wrote Frank O’Connor, product manager of the VA database at Morningstar. “In fact, net cash flow of $8.9 billion is the highest reported since the fourth quarter of 2007.”