Last week, I received the latest annuities quarterly report from LIMRA. There were mixed results in the data, which had me wondering: How’s your annuity book of business faring?
According to the report, which is based on fourth quarter numbers, your success might depend somewhat on which type of annuity product you’ve made your biggest point of focus.
The following is a quick breakdown based on LIMRA’s data. As a note, after you’ve looked over the numbers, send me a note at firstname.lastname@example.org
or click the comments section below, so we can see how the industry data is matching up with our Senior Market Advisor
According to the report, variable products
rose 10 percent for the year and saw an even steeper hike of 17 percent growth during the fourth quarter.
“We attribute the growth to increased confidence in the VA market by consumers, advisors and the companies themselves, “ says Joseph Montminy, assistant vice president for LIMRA’s annuity research. “We saw growth in almost two-thirds of the VA industry in 2010. Strong growth in the equities market and continued interest in guarantee income riders drove fourth quarter VA sales to its highest level in more than two years.”
For indexed annuities
, the news remained positive. IA sales ticked up 7 percent for the year and saw a 17 percent bump for the fourth quarter. An interesting note regarding IA products: “Market share for indexed annuities reached 43 percent of fixed annuity sales in the fourth quarter of 2010, which is the first time index annuities outperformed fixed-rate deferred annuities products (40 percent).”
The news was not as good for fixed products
. According to the report “total fixed annuity sales deteriorated nine percent in the fourth quarter of 2010, when compared to fourth quarter 2009.” The news got worse for the year where total fixed sales dropped 27 percent compared to 2009.
Again, when you have a minute, send us a note and let us hear how your annuity business is faring. Talk with you soon.