Variable Indexed Annuity Sales Keep the Light On

Life insurer support helped keep U.S. sales of individual variable indexed annuities growing in the second quarter, even as sales of all other major types of individual annuities fell.

Analysts at the Secure Retirement Institute say, in a summary of new survey data, that overall individual annuity sales fell 24%, to $49 billion.

Sales of all types of variable annuities fell 19%, to $21 billion.

In the market for fixed annuities, including non-variable indexed annuities, sales dropped 27%, to $28 billion.

Resources

• A copy of the latest Secure Retirement Institute survey summary is available here, and a copy of the underlying summary data is available here.
• An article about first-quarter annuity sales figures is available here.

The Secure Retirement Institute is an arm of Windsor, Connecticut-based LL Global. Analysts use annuity issuer surveys to produce quarterly annuity sales data.

Here’s what happened to sales of some major sub-types of annuities, other than registered index-linked annuities, that are included in the survey results summary:

• Variable indexed annuities: $4.5 billion (up 8%)
• Fixed-rate deferred annuities: $13 billion (down 2%)
• Variable annuities, excluding indexed variable annuities: $16 billion (down 25%)
• Indexed annuities that are classified as non-variable products: $12 billion (down 40%)
• Fixed immediate annuities: $3.3 billion (down 48%)
• Deferred income annuities: $350 million (down 51%)

Issuers of individual annuities filed as non-variable products must protect the holder against any loss of account value that might otherwise result from investment market fluctuations.