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

CFTC explores letting futures exchanges trade spot crypto
CFTC explores letting futures exchanges trade spot crypto

Regulator is asking for feedback on how this might work.

Trump to name new Fed governor, jobs data head in coming days
Trump to name new Fed governor, jobs data head in coming days

President says he has a ‘couple of people in mind’ for central bank role.

JPMorgan’s asset management arm targets Europe retail investors in active ETF tie-up
JPMorgan’s asset management arm targets Europe retail investors in active ETF tie-up

Wall Street firm partners with Dutch online broker to fuel push into EU market.

UBS to settle outstanding Credit Suisse RMBS case with $300M payment
UBS to settle outstanding Credit Suisse RMBS case with $300M payment

Agreement with the US Department of Justice comes eight years after settlement.

GeoWealth secures $38M in funding round led by major alternative investment manager
GeoWealth secures $38M in funding round led by major alternative investment manager

Series C funding will accelerate unification of TAMP’s model portfolios.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

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.