First-quarter annuity sales top $56 billionNews added by Benefits Pro on June 13, 2014
BenefitsPro

Benefits Pro

Joined: September 07, 2011

My Company

By Lisa Barron

Total annuity sales in the first quarter of 2014 reached $56.1 billion, up 13.1 percent compared with the first quarter of last year, when sales totaled $49.6 billion, according to the Insured Retirement Institute.

The IRI first-quarter results, based on data reported by Beacon Research and Morningstar, reflected high levels of fixed annuity sales, which totaled $22.6 billion during the period. This was an increase of 50.7 percent from nearly $15 billion in the first quarter of 2013 and down just 4.1 percent from the $23.5 billion reported in the previous quarter.

At the same time, though, variable annuity total sales totaled $33.5 billion in the first three months of the year, down 3.2 percent compared with the like quarter of last year, when sales reached $34.6 billion, and down 6.4 percent from $35.8 billion during the fourth quarter of 2013.

Beacon Research sales of indexed annuities in the first quarter were the second-highest on record, amounting $11.2 billion. That was an increase of 44.3 percent from nearly $7.8 billion during the first quarter of 2013 but a decline of 4.4 percent from the record high of nearly $11.8 billion set during the last quarter of 2013.

“For the first time since June of 2008, we have enjoyed nine months of higher year-over-year monthly sales,” said Beacon Research President Jeremy Alexander.

According to Morningstar, variable annuity net assets continue to reach new all-time highs, ending the first quarter of this year at $1.88 trillion. But variable annuity net sales were negative for the first quarter, coming in at an estimated -$1.1 billion.

Originally published on BenefitsPro.com
The views expressed here are those of the author and not necessarily those of ProducersWEB.
Reprinting or reposting this article without prior consent of Producersweb.com is strictly prohibited.
If you have questions, please visit our terms and conditions
Post Press Release