Fixed annuities again surpass VAs in sales

Fixed annuities continued to outsell their variable counterparts in the first quarter, according to data from LIMRA International Inc. of Windsor, Conn.
MAY 28, 2009
Fixed annuities continued to outsell their variable counterparts in the first quarter, according to data from LIMRA International Inc. of Windsor, Conn. For a second consecutive quarter, fixed annuities beat variable annuities, raking in $35.6 billion in sales during the first quarter, a 74% gain from the year-earlier period. By comparison, variable annuities made $30.7 billion in sales, down 27% from the first quarter of 2008. Most varieties of fixed annuities experienced a leap in demand, particularly the market-value-adjusted contracts. They experienced a 200% year-over-year gain, to $6.6 billion. Sales of book-value annuities climbed 102%, to $18.6 billion. Book-value annuities pay a declared rate of interest for a given period, while market-value-adjusted annuities allow clients to choose and fix the time period and interest rate over which the annuity will grow. Total annuity sales for the first quarter grew by 6% year-over-year, hitting $66.3 billion. Additionally, MetLife Inc., the New York-based carrier, was able to move the most annuities overall in the first quarter, totaling $7.59 billion —$3.85 billion in fixed-annuity sales and $3.74 billion in variable annuities. It also was the lead seller in each of those categories. New York Life Insurance Co. came in second for total annuity sales ($3.82 billion) and fixed annuities alone ($3.61 billion). TIAA-CREF of New York was second in variable-annuity sales, with $3.48 billion.

Latest News

UBS bets on next-gen talent amid continued advisor exodus
UBS bets on next-gen talent amid continued advisor exodus

The bank's new training initiative aims to add hundreds of advisors as it expands its mass-affluent advice unit, according to Barron's.

PIABA slams SIFMA proposal for FINRA arbitration reform
PIABA slams SIFMA proposal for FINRA arbitration reform

The lawyers' group warns that adjudicating certain claims externally and limiting punitive damages, among other suggestions, could hurt investors.

Savant Wealth targets Silicon Valley with Parkworth acquisition
Savant Wealth targets Silicon Valley with Parkworth acquisition

With Parkworth Wealth Management and its Silicon Valley tech industry client base now onboard, Savant accelerates its vision of housing 10 to 12 specialty practices under its national RIA.

InvestCloud rolls out new-generation AI solutions with Zocks, smartKYC
InvestCloud rolls out new-generation AI solutions with Zocks, smartKYC

The wealth tech giant is unveiling its new offerings, designed for advisor productivity and client engagement, as investors and experts continue to grapple with the implications of AI.

RIA moves: Aspen Standard adds $1.1B Boston RIA, Ashton Thomas enters Hawaii market
RIA moves: Aspen Standard adds $1.1B Boston RIA, Ashton Thomas enters Hawaii market

Meanwhile, Merchant is continuing to expand its support for RIAs by partnering with a South Dakota-chartered trust company.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.