Annuity sales continue to increase, outpacing levels from the same period last year, according to
Third-quarter industry-wide sales were $57 billion, up 5 percent from third-quarter 2010 sales of $54.8 billion. Yet compared to second-quarter sales of $60.3 billion, third-quarter numbers were down 6 percent.
"As annuity sales continue to outpace the impressive benchmarks established last year, this year is truly poised to be a historic one for the industry," said IRI President and CEO Cathy Weatherford. "With variable annuity sales growing this quarter by more than $2 billion, and fixed annuities maintaining a strong footing in the market, it is evident that risk-adverse investors are turning to these guarantees now more than ever. With this in mind, it is likely that 2011 will be the turning point for the industry, with sales reaching pre-crisis levels."
Fixed annuity sales for the third quarter were $17.9 billion, down from $20.4 billion in the previous quarter, a 12.3-percent decrease. Year-to-year quarterly sales of fixed annuities were down 12.7 percent, with the third quarter of 2010 coming in at $20.5 billion. Year-to-date fixed annuity sales were $57.2 billion, 2.7 percent below $58.8 billion in 2010.
"Despite record-low interest rates, year-to-date fixed annuity sales have held up quite well,"
Variable annuity sales for the third quarter were $39.1 billion, down 2 percent from $39.9 billion in the previous quarter. Year-to-year quarterly sales of variable annuities posted a 14-percent increase from third-quarter 2010 sales of $34.3 billion. Year-to-date variable annuity sales were $118.1 billion, 17 percent above $100.7 billion in 2010.
"Up significantly from year-ago levels, third-quarter variable annuity sales of $39.1 billion put the industry on track this year to exceed $150 billion in sales for the first time since 2008,"
