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].

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