Variable annuity sales jumped 16 percent in the second quarter when compared to the prior year, to reach $40.9 billion, according to data from
Total annuity sales hit $62.4 billion in the second quarter, an increase of nine percent compared to the prior year, according to LIMRA’s second quarter 2011 U.S. Individual Annuities Sales survey. For the fifth quarter in a row, variable annuity sales have improved, boosting overall annuity sales. Indeed, fixed annuity sales continue to struggle in the current low interest rate environment, falling one percent in the second quarter compared to prior year.
“Variable annuity sales grew 20 percent in the first half of 2011, reaching $80.7 billion,” said Joseph Montminy, LIMRA assistant vice president, annuity research. “Recent market volatility will certainly affect third quarter VA sales, but consumer demand for guaranteed income protection will continue to drive sales of VAs with guaranteed living benefit (GLB) riders. Eight to seven percent of new VA sales elected a GLB rider (when available at purchase) in the second quarter of 2011.”
