By Warren S. Hersch
Annuity sales dipped 4.3 percent in the third quarter,
The Insured Retirement Institute (IRI)
, Washington, D.C., today published this finding on Monday from an annuity industry sales survey based on data reported by Morningstar, Inc. and Beacon Research.
Industry-wide annuity sales for the third quarter reached nearly $52.9 billion, down from $55.3 billion in the previous quarter.
However, income annuity sales increased to nearly $2.4 billion in the third quarter, up 3.8 percent from about $2.3 billion in the second quarter. Income annuity sales were also up 6.7 percent year-over-year from $2.2 billion in the third quarter of 2011.
Indexed annuity sales totaled $8.7 billion, down just 1.2 percent from $8.8 billion in the second quarter and up 0.5 percent year over year from just under $8.7 billion in the third quarter of 2011, the report reveals.
Third quarter variable annuity
total sales dipped 4.9 percent to $36.3 billion from $38.2 billion in the second quarter of 2012, according to Morningstar. Year over year, variable annuity sales decreased 7.2 percent from $39.1 billion in the third quarter of 2011. Despite the decline, the report adds, variable annuity net sales for the quarter increased by 44.3 percent to $5.8 billion from $4 billion during the second quarter.
VA sales totaled $24.5 billion for qualified plans and $11.8 billion for non-qualified sales during the third quarter. Fixed annuity sales reached $8.6 billion for qualified plans and $8.0 billion for non-qualified sales during the third quarter.
Variable annuity total net assets reached a new all-time high of $1.62 trillion during the third quarter of 2012, up about four percent from $1.56 trillion in the second quarter.
Total fixed annuity sales for the third quarter were down 3.1 percent to $16.6 billion from $17.1 billion in the second quarter of 2012. Year over year, fixed annuity sales decreased 12.8 percent from $19 billion in the third quarter of 2011, the survey discloses.
For complete annuity sales reporting data, access the PDF version
Originally published on LifeHealthPro.com