Reston, Va.-based NAVA Inc., the Association for Insured Retirement Solutions, has unveiled some grim, if not unexpected, results for the fourth quarter of 2008 for the variable annuity industry. Relative to the fourth quarter one year ago, net assets decreased by 24.1% to $1.1 trillion. Whats more, compared to the prior quarter in 2008, NAVA found the combined net assets of U.S. variable annuities decreased 13%.Premium flows, a total of variable annuity total sales, fell to $33.3 billion for the fourth quarter, a 30.3% decrease from fourth quarter the previous year.Cathy Weatherford, NAVA President and CEO, say despite the numbers, the value proposition of variable proposition remains undiminished, especially considering demographic trends."Our industry is facing many challenges not unlike other industries that are being touched by today's global financial crisis," says Cathy Weatherford, NAVA President and CEO. "2009 is shaping up to be a tough year for the millions of baby boomers who have already seen the value of their retirement assets plummet. Safeguarding retirement nest eggs may well become the most important issue on the minds of every retirement-minded American.
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