VA sales hit $41.6 billion in first quarter

Variable annuity sales hit $41.6 billion during the first quarter of 2008, a modest 1.7% increase from the same period last year, according to Reston, Va.-based NAVA Inc. Net assets in variable annuities have also risen, reaching $1.39 trillion, compared to $1.38 trillion in the first quarter of 2007. First-quarter net sales totaled $7.2 billion, up 12.3% from the same period last year. Of all sales, 64.2% of the premiums were paid by qualified plans while non-qualified plans paid 35.8% of premiums. Going by asset classes, funds have been pulled back from equities and have gone into fixed income, bonds and money markets. Of the $1.39 trillion in assets, 56.1% is allocated to equities, compared with 60% for the same period in 2007. Placement in bonds has risen to 9.6%, compared to 8.2% in the year-ago period, and fixed-income allocations have grown to 18.8% from 18.6%.