LIMRA released its list of the top 20 writers of overall total annuities, variable annuities (VA) and fixed annuities for the second quarter of 2010. The list is based on LIMRA’s U.S. Individual Annuities survey.
In the second quarter of 2010, Prudential Annuities led overall annuity sales, with almost $11 billion in sales. Prudential Annuities also topped the list of variable annuity writers in the second quarter, recording $10.2 billion in variable annuity sales. The top fixed annuity writer in the second quarter of 2010 was New York Life with $3.7 billion in fixed annuity sales. To see the complete list, click here.
As part of LIMRA’s tracking of the entire annuity industry, the Windsor, Conn., global research, consulting and professional development organization reports double-digit growth for VA sales in Q2, 2010. VA sales increased 11% in the second quarter of 2010, as compared to the prior year, to reach $35.5 billion, according to LIMRA’s U.S. Individual Annuities Second Quarter 2010 Sales Report, which represents 96% of the market.
VA sales were 10% higher than sales in the first three months of 2010. For the first six months of 2010, VA sales improved 8% compared to the first half of 2009, totaling $67.9 billion.
“After five consecutive quarters where VA sales were lingering in the $31-33 billion range, we are finally seeing signs of recovery as VA sales jumped more than $3 billion in the second quarter,” says Joe Montminy, AVP for LIMRA's annuity research. “In addition, there was broad market growth as most companies in the top twenty experienced VA sales growth this quarter—whereas last year we saw growth concentrated with the top five carriers.”
Fixed annuity sales continued to decline in the second quarter, down 26% compared to the second quarter of 2009, when total fixed annuity sales were much stronger. However, compared to the first quarter, fixed annuity sales improved 13% to $21.5 billion in the second quarter of 2010 and $40.5 billion year-to-date.
After a slight drop in the first quarter of 2010, second-quarter indexed annuity sales matched the record levels hit in the second quarter of 2009. Market volatility and the low interest rate environment continued to drive sales of indexed annuities, which reached $8.2 billion in the second quarter.
Book value annuity sales dropped 43% in the second quarter of 2010, totaling $8.1 billion but improved 7% from the first quarter. Second quarter MVA sales of $1.6 billion were down 54% from second quarter 2009. Fixed immediate annuity sales were $2.1 billion and structured settlement sales reached $1.5 billion in the second quarter of 2010.
Total annuity sales were down 7% in the second quarter compared to the second quarter of 2009 to $57.0 billion. However, total annuity sales grew 11% over the first quarter, marking the first quarterly increase in total annuity sales since the fourth quarter of 2008. Year-to-date, total annuity sales totaled $108.4 billion.
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