Individual annuity sales hit record highs

Individual annuity sales increased 6% in the second quarter to a record of $66.5 billion over the same period in 2006, according to LIMRA International Inc. Sales of annuities for the first half of the year were up 3% over the first half of 2006, reaching the $124.5 billion mark. Variable annuity sales increased 13% in the second quarter to a record $48.5 billion. Fixed annuity sales fell 10% for the quarter to $18 billion and are down 12% to $33.9 billion for the first half of the year. Indexed annuities fell 2% to $6.4 billion in the second quarter compared to the year-ago period. Book value deferred annuity sales contributed to the decline, falling 24% to $6.7 billion. Meanwhile, market value adjusted annuities which slipped 6% to $1.6 billion. Fixed immediate annuities were up 13% to $1.7 billion and structured settlements grew 7% to $1.6 billion. Among distribution channels, financial planners and independent broker-dealers led variable annuity sales with $13.1 billion, up 15% for the quarter. Sales among career agents and stockbrokers grew 11% each. LIMRA International is based in Windsor, Conn.