Fixed annuities outsold variable annuities $35.6 billion to $30.7 billion, according to LIMRA’s U.S. Individual Annuities First Quarter 2009 Sales Report. It was the first time fixed annuities outsold variables for two consecutive quarters since the first half of 1995.
A list of the top 20 writers of variable annuities and fixed annuities ranked by first quarter 2009 sales results, as well as the first quarter Annuity Industry Estimates Chart were released by LIMRA.
Indexed annuity sales increased 21%. Compared to the same period of last year, sales of structured settlements were down six percent and fixed immediate annuities grew 12 percent.
“Consumers, still leery of the volatile stock market and looking for secure, competitive guaranteed rates of return, continued to invest more money into fixed annuities for their retirement income needs,” said Joe Montminy, research director for LIMRA’s annuity research.
With a 74% increase, fixed annuities propelled overall individual annuity sales to a six percent gain, reaching $66 billion in the first quarter of 2009. Sales of variable annuities experienced its fourth quarter of double-digit declines, dropping 27% compared to the first quarter of 2008.
Sales increased for all fixed deferred annuity product-types in the first quarter 2009, led by a 200% increase in market value adjusted (MVA) products. Sales of book value products, the largest-selling type of fixed annuity, were double sales from the first quarter of 2008.
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