VA sales sink in second quarter

Second-quarter variable annuity sales fell to $41.9 billion, down 11.2% from the comparable period last year, according to NAVA Inc. Back in 2007, total sales of variable annuities hit $47.2 billion, the Reston, Va.-based association noted in a statement today. The products have declined in overall sales this year, compared with 2007, as difficult equity markets have made clients more hesitant about buying into an equity-based insurance product. Variable annuity net assets declined slightly during the second quarter, hitting $1.04 billion, down from $1.45 billion in the year-ago quarter. Reflecting investors’ shaky stance toward equities, 55% of the $1.4 billion of assets were in equity accounts, down from 60.9% in the comparable period last year. Fixed-account participation rose, holding 19.7% of all assets, compared with 17.7% in the second quarter of 2007.