Annuities fell in 1Q; indexed up
May 31, 2012 by Darla Mercado
Annuity sales took a dive during the first quarter, but sales of fixed indexed annuities jumped, thanks in large part to guaranteed-lifetime– withdrawal-benefit riders.
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Sales of fixed annuities, too, slipped amid low interest rates. Sales fell 10% from a year earlier.
Indexed annuities, however, rose by 14% in the first quarter, reaching $8.1 billion in sales.
Guaranteed-lifetime-withdrawal benefits helped move the product among customers. Two of three people who bought fixed indexed annuities decided to buy a GLWB rider, which lets customers get lifetime income without annuitizing their contracts.
Allianz Life Insurance Co. of North America held on to its first- place standing among sellers of fixed indexed annuities with its MasterDex X annuity.
Aviva Life and Annuity Co. came in second, according to data from AnnuitySpecs.com.
American Equity Investment Life Holding Co. ranked third.