Sales of fixed annuities trail off in the third quarter

Sales of fixed annuities fell during the third quarter to $21.9 billion, reflecting a decline of 21% from the year-ago period, according to data from Beacon Research.
NOV 23, 2009
Sales of fixed annuities fell during the third quarter to $21.9 billion, reflecting a decline of 21% from the year-ago period, according to data from Beacon Research. During the first three quarters, total sales of fixed annuities were $84.5 billion, up 16% from the first three quarters of 2008. Third-quarter book value annuity sales were down 30% year over year, with a total of $9.9 billion. Meanwhile, market-value-adjusted annuity sales dropped to $2.7 billion, a decrease of 37% from the third quarter of 2008. Book-value annuities pay a declared rate of interest for a certain period, while their market-value-adjusted cousins allow customers to choose and fix the time period and interest rate for the annuity's growth. Income annuities also took a dive, bringing in $1.9 billion in sales, reflecting a 16% decline year over year. Indexed annuities, on the other hand, rose 6% during the third quarter, compared with the year-ago period. Sales increased to $7.3 billion. Year-to-date figures for each annuity type were rosier. Book-value annuity sales hit $43 billion for the first three quarters, an 18% increase from the same period a year earlier. Indexed-annuity sales grew by 16% during the first three quarters, compared with the year-ago period, reaching $22.6 billion. Market-value-adjusted annuities hit $12.8 billion, up 25% from a year earlier. Income annuities fell, however, down 3%, bringing in $6 billion in sales. New York Life Insurance Co. was the sales leader during the third quarter, selling $1.7 billion in fixed annuities. Allianz Life Insurance Co. of North America ascended to second place from third place, bringing in $1.4 billion in fixed-annuity sales. Pacific Life Insurance Co. brought in $1.4 billion in sales, cracking the list of the top 10 fixed annuity sellers for the first time.

Latest News

The portfolio may be diversified. The family often isn't
The portfolio may be diversified. The family often isn't

Advisors stress-test allocations for market drops, but the bigger threat to a client's wealth usually sits outside the portfolio entirely

Diamonds that never existed: SEC says Lugano co-founder booked fake sales
Diamonds that never existed: SEC says Lugano co-founder booked fake sales

The SEC says the payouts came from later investors, and the numbers never added up

SEC alleges barred planner steered clients into tax-lien fraud
SEC alleges barred planner steered clients into tax-lien fraud

The SEC says he doubted the tax liens were real - and kept selling them to clients

Bank of America executive fatally stabbed in Times Square
Bank of America executive fatally stabbed in Times Square

Erin Piacenti, a vice president at Bank of America, was killed in a random attack in Times Square on Monday.

Wealth Enhancement expands in Virginia with Richmond-area RIA deal
Wealth Enhancement expands in Virginia with Richmond-area RIA deal

Minneapolis-based mega-RIA adds a $376 million hybrid RIA from Raymond James as its own $7 billion sale process reportedly plays out in the background.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income