Third-quarter sales of fixed annuities slipped 21%

Sales of fixed annuities fell during the third quarter to $21.9 billion, a 21% decline from a year earlier, according to data from Beacon Research Publications Inc.
FEB 17, 2010
Sales of fixed annuities fell during the third quarter to $21.9 billion, a 21% decline from a year earlier, according to data from Beacon Research Publications Inc. But for the first three quarters of the year, total sales of fixed annuities rose 16% from a year earlier to $84.5 billion. Third-quarter book value annuity sales were down 30% year over year, falling to a total of $9.9 billion. And market-value-adjusted annuity sales dropped to $2.7 billion, a decrease of 37% from a year earlier. Book value annuities pay a declared rate of interest for a certain period, while their market-value-adjusted cousins allow customers to choose and fix the time period and interest rate for the annuity's growth. Income annuities also took a dive, bringing in $1.9 billion in sales, reflecting a 16% year-over-year decline. Indexed annuities, on the other hand, rose 6% during the third quarter from a year earlier. Sales increased to $7.3 billion. Year-to-date figures for each annuity type were rosier. Book value annuity sales hit $43 billion for the first nine months, an 18% increase from a year earlier. Indexed-annuity sales grew by 16% during the period from a year earlier, reaching $22.6 billion. Meanwhile, market-value-adjusted annuities hit $12.8 billion, up 25% from a year earlier. Income annuities, however, fell 3%, bringing in $6 billion in sales. New York Life Insurance Co. was the sales leader during the third quarter, selling $1.7 billion in fixed annuities. Allianz Life Insurance Company of North America was in second place, bringing in $1.4 billion in fixed-annuity sales. Pacific Life Insurance Co. brought in $1.4 billion in sales, cracking the list of the top 10 fixed-annuity sellers for the first time. E-mail Darla Mercado at [email protected].

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