Fixed annuities sales down 9% in '07

Estimated sales of book value annuities totaled $6.9 billion, while sales of indexed annuities totaled $6.3 billion.
MAR 11, 2008
By  Bloomberg
Estimated sales of fixed annuities totaled $65.1 billion for the 2007 calendar year, a 9% drop from 2006, according to Beacon Research Inc.'s quarterly Fixed Annuity Premium Study. During the fourth quarter, fixed-annuity sales were an estimated $17.4 billion, representing a 4.1% increase from the year-ago period. Breaking sales down by product type, estimated sales of book value annuities totaled $6.9 billion, while sales of indexed annuities totaled $6.3 billion, representing increases in sales of 10.5% and 2.5%, respectively from the year-ago quarter. Sales of market value-adjusted annuities totaled $2.1 billion, representing a 20.1% drop from the year-ago period. Allianz Life led all insurers with $1.6 billion in fixed annuity sales. AIG Annuity Insurance Co. and New York Life rounded out the top three with $1.37 billion and $1.2 billion in sales, respectively. Sales pushed toward longer-rate terms in the fourth quarter. Rate terms of five years or more had an 83.6% share of market value-adjusted sales, up from 81.7% in third quarter. The ten-year interest guarantee period alone had a 16.9% share of sales -representing the highest level since third quarter, 2004. The study was conducted by was based on the sales of 49 insurance companies representing an estimated 88% of the market. Beacon Research is based in Evanston, Ill.

Latest News

Maryland bars advisor over charging excessive fees to clients
Maryland bars advisor over charging excessive fees to clients

Blue Anchor Capital Management and Pickett also purchased “highly aggressive and volatile” securities, according to the order.

Wave of SEC appointments signals regulatory shift with implications for financial advisors
Wave of SEC appointments signals regulatory shift with implications for financial advisors

Reshuffle provides strong indication of where the regulator's priorities now lie.

US insurers want to take a larger slice of the retirement market through the RIA channel
US insurers want to take a larger slice of the retirement market through the RIA channel

Goldman Sachs Asset Management report reveals sharpened focus on annuities.

Why DA Davidson's wealth vice chairman still follows his dad's investment advice
Why DA Davidson's wealth vice chairman still follows his dad's investment advice

Ahead of Father's Day, InvestmentNews speaks with Andrew Crowell.

401(k) participants seek advice, but few turn to financial advisors
401(k) participants seek advice, but few turn to financial advisors

Cerulli research finds nearly two-thirds of active retirement plan participants are unadvised, opening a potential engagement opportunity.

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.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave