Fixed-annuity sales fuel overall growth

Overall individual-annuity sales grew 4% during the second quarter, buoyed by a spike in fixed-annuity sales, according to Limra International Inc. U.S. individual-annuity sales grew to $68.4 billion during the second quarter, up from $65.7 billion, according to the Windsor, Conn.-based research organization. Much of that growth came from a 46% jump in fixed-annuity sales, including immediate annuities, structured settlements and deferred annuities. Fixed-annuity sales reached $26.2 billion for the quarter and $47.6 billion year-to-date as of June 30. Market-value-adjusted annuities led the pack in the second quarter, selling to the tune of $3.7 billion, a 118% year-over-year increase. Book value came in second, selling $12.4 billion, up 91% from the comparable period in the previous year. Variable annuities slid during the second quarter, with sales reaching $42.2 billion, down 12% in 2007. Banks moved the most product among the distribution channels, selling $25.8 billion in annuities year-to-date, a 31% increase. Financial planner and independent-broker-dealer annuity sales accounted for $24.9 billion year-to-date as of June 30, down 2% from the year-earlier period. Career agents matched last year’s $25.3 billion in sales, while independent agents sold $22.8 billion of annuities, up 11%.