Fixed-annuity sales zoom in second quarter

Sales hit an estimated $24.6 billion during the second quarter, up 54.1% from the second quarter of 2007.
AUG 25, 2008
By  Bloomberg
Fixed-annuity sales hit an estimated $24.6 billion during the second quarter, up 54.1% from the second quarter of 2007, according to Beacon Research. Book value annuities, which pay a declared rate of interest for a specified period, brought in the most money, raking in $12 billion in sales, more than double the amount in the year-earlier quarter, the Evanston, Ill.-based annuity research firm said. Indexed annuities followed, posting $6.9 billion in sales, up 4.5% from a year earlier. Market-value-adjusted fixed annuities has $3.6 billion in sales, while sales of immediate fixed annuities were $2.1 billion, increases of 89.2% and 29.5%, respectively. The top seller of fixed annuities was New York Life Insurance Co., which sold a total of $2.2 billion in the second quarter. AIG Annuity Insurance Co. of Houston sold $2.09 billion, while Aviva USA of Des Moines, Iowa, sold $1.67 billion. AEGON USA Inc. of Cedar Rapids, Iowa and its Charlotte, N.C.-based subsidiary Transamerica sold $1.17 billion. Total fixed annuity sales through banks hit $7 billion, an 81.1% increase from the second quarter of 2007. Participating insurance companies in Beacon's survey, which excludes credit unions and savings and loan institutions, sold $1.97 billion in fixed annuities through banks, while New York Life was second with $1.35 billion in sales.

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