Fixed Annuities Sales Rise as Variable Sales Decline: 4th Quarter 2008
April 1, 2009 by Staff Writer
Fixed annuity sales increased 79 percent in the fourth quarter of 2008, marking a record-setting $109.4 billion figure, keeping overall annuity sales growing, according to a report by LIMRA.
Variable annuity (VA) sales, however, declined 30 percent in the fourth quarter of 2008 as compared to the fourth quarter of 2007.
Sales increased for all fixed deferred annuity products in 2008, led by a 135 percent increase in market value adjusted products. Sales of book value products, the largest fixed annuity product, grew 84 percent. Indexed annuity sales increased 6 percent.
Immediate fixed annuity sales, while small in total, increased 23 percent in 2008, fueled by growing numbers of retirees seeking guaranteed lifetime income.
A separate report by AnnuitySpecs.com showed an even higher percentage point increase for indexed annuities. Reports from 59 indexed annuity carriers found that total fourth-quarter sales of indexed annuities were $7.2 billion, up 12.7 percent from the same period the previous year.
Total indexed annuity sales were $26.7 billion in 2008, which is the second-highest sales year for the product line, according to the AnnuitySpecs.com report.
Fixed annuity sales increased 79 percent in the fourth quarter of 2008, marking a record-setting $109.4 billion figure, keeping overall annuity sales growing, according to a report by LIMRA.
Variable annuity (VA) sales, however, declined 30 percent in the fourth quarter of 2008 as compared to the fourth quarter of 2007.
Sales increased for all fixed deferred annuity products in 2008, led by a 135 percent increase in market value adjusted products. Sales of book value products, the largest fixed annuity product, grew 84 percent. Indexed annuity sales increased 6 percent.
Immediate fixed annuity sales, while small in total, increased 23 percent in 2008, fueled by growing numbers of retirees seeking guaranteed lifetime income.
A separate report by AnnuitySpecs.com showed an even higher percentage point increase for indexed annuities. Reports from 59 indexed annuity carriers found that total fourth-quarter sales of indexed annuities were $7.2 billion, up 12.7 percent from the same period the previous year.
Total indexed annuity sales were $26.7 billion in 2008, which is the second-highest sales year for the product line, according to the AnnuitySpecs.com report.