VA-voom! U.S. variable annuity sales up 24%

VA-voom! U.S. variable annuity sales up 24%
JUN 02, 2011
Variable-annuity sales in the U.S. increased for the fifth straight quarter, led by gains at Prudential Financial Inc. and MetLife Inc., as rising stock markets and changing terms spurred demand. Sales climbed to $38.9 billion, or 24 percent, in the first quarter from $32.2 billion a year earlier, trade group Limra said today on its website. Prudential, the top provider of the retirement products, sold $6.81 billion, an increase 40 percent from a year earlier. New York-based MetLife ranked second as sales rose 41 percent to $5.68 billion. Sales of equity-linked variable annuities increased as stock markets rebounded from March 2009 lows, cutting the risk insurers will shoulder losses on customers' guaranteed returns. The Standard & Poor's 500 Index climbed 5.4 percent in the first quarter after rising 13 percent last year. Savers may have boosted investments to lock in terms ahead of scheduled changes in benefits and fees. “It's reasonable to assume that a portion of our first- quarter sales represented accelerated purchases due to the anticipated product changeover,” Mark Grier, vice chairman of the Newark, New Jersey-based insurer, said on May 5 during a call with analysts to discuss first-quarter results. MetLife has also changed terms, reducing guaranteed payout rates, Robert Sollmann, executive vice president of retirement products, said at a conference in February. Insurers lost money on the products in 2008 and early 2009 because the funds are generally invested in stocks. The S&P 500 declined 38 percent in 2008. --Bloomberg News--

Latest News

Dimon and Trump talk economy and Fed rates as meetings resume
Dimon and Trump talk economy and Fed rates as meetings resume

President meets with ‘highly overrated globalist’ at the White House.

NASAA moves to let state RIAs use client testimonials, aligning with SEC rule
NASAA moves to let state RIAs use client testimonials, aligning with SEC rule

A new proposal could end the ban on promoting client reviews in states like California and Connecticut, giving state-registered advisors a level playing field with their SEC-registered peers.

Could 401(k) plan participants gain from guided personalization?
Could 401(k) plan participants gain from guided personalization?

Morningstar research data show improved retirement trajectories for self-directors and allocators placed in managed accounts.

UBS sees a net loss of 111 financial advisors in the Americas during the second quarter
UBS sees a net loss of 111 financial advisors in the Americas during the second quarter

Some in the industry say that more UBS financial advisors this year will be heading for the exits.

JPMorgan reopens fight with fintechs, crypto over fees for customer data
JPMorgan reopens fight with fintechs, crypto over fees for customer data

The Wall Street giant has blasted data middlemen as digital freeloaders, but tech firms and consumer advocates are pushing back.

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.