Annuity sales were strong in the third quarter. LBN’s Ryan Gaumont reports that total annuity sales in the third quarter of 2015 were $60.6 billion, a four percent improvement over last year. Sales for the first nine months of the year were $175.3 billion, down two percent from 2014. The sales information is provided by the LIMRA Secure Retirement Institute.
The positive growth and total annuity sales, despite high market volatility, were motivated by substantially strong fixed-rate deferred and indexed annuity results, according to Todd Giesing, LIMRA’s assistant research director. But market volatility negatively affected variable annuity sales, which dropped seven percent in the third quarter to $32.9 billion. Variable annuity sales are fifty-four percent of the overall annuity business, down from sixty-seven percent in 2012.
Total indexed annuity sales were up twenty-two percent, a record breaking level. Bank sales of indexed annuities now represents eighteen percent of sales, up from six percent in 2011. Simpler products account for the change, according to LIMRA.
Third quarter Fixed-rate deferred annuity sales improved thirty two percent to nine point one billion dollars but year to date they sit flat compared to last year. Single premium immediate annuity sales were also flat in the third quarter, totaling $6.5 billion, a twelve percent decrease.
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