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

Ex-broker in Florida gets more than six years for stealing $2 million from senior
Ex-broker in Florida gets more than six years for stealing $2 million from senior

Eric J. Stone was fired by Fidelity in 2021 after facing claims he took loans from clients.

Vistria takes majority stake in Curi Capital in fresh RIA deal
Vistria takes majority stake in Curi Capital in fresh RIA deal

Chicago-based Curi Capital gets new majority owner as $14 billion RIA eyes acquisitions and expanded family office services

WealthReach, VastAdvisor tie-up takes aim at advisors' cold outreach problem
WealthReach, VastAdvisor tie-up takes aim at advisors' cold outreach problem

Partnership pairs organic lead detection with paid ad targeting to help end "spray-and-pray" marketing for growth-seeking advisory firms.

LPL taps Wells Fargo vet as new chief technology and information officer
LPL taps Wells Fargo vet as new chief technology and information officer

Jonathan Lewis joins the wealth management giant as it proceeds with a $2 billion AI and technology push for advisors.

LPL Financial lands $1.6B Conte Wealth Advisors from Cambridge
LPL Financial lands $1.6B Conte Wealth Advisors from Cambridge

A third-generation Pennsylvania firm with 24 advisors and $1.6 billion in client assets has left Cambridge Investment Research.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income