Annuity Sales Rose for Q2, Slipped Year-on-Year: LIMRA

Guaranteed lifetime withdrawal benefits lead fourth quarter of increases for indexed annuities

Annuity sales grew 4% in the second quarter, LIMRA reported on Monday, totaling $57 billion. Despite those gains, sales fell 8% from the same period a year ago. Sales for the first half of 2012 were nearly $112 billion.

“The current economic conditions remain challenging for most insurers, driving overall annuity sales down,” Joseph Montminy, assistant vice president for LIMRA annuity research, said in a statement. “The one bright spot this quarter were indexed annuity sales, which are on pace to have a record year.”

Indexed annuity sales topped $8 billion, up 6% since the second quarter of 2011. For the first half of the year, they’re up 10% over the same period in 2011. LIMRA also noted that this is the fourth consecutive quarter that indexed annuities have outperformed traditional fixed annuities, taking nearly half of the fixed annuity market.

Guaranteed lifetime withdrawal benefits are leading indexed annuity sales. LIMRA found 87% of indexed annuities offered those benefits.

Variable annuities fell 5% from the second quarter of 2011, but increased 5% from the first quarter of 2012 to $36.4 billion. Fixed immediate annuities also fell over their year-ago period, dropping 14% to nearly $2 billion.

LIMRA highlighted the top 20 annuity producers for the second quarter along with their total annuity sales:

  1. Jackson National Life $10.9 billion
  2. MetLife $10.564 billion
  3. Prudential Annuities $10.561 billion
  4. TIAA-CREF $7.5 billion
  5. AIG Companies $6.6 billion
  6. Lincoln Financial Group $6.1 billion
  7. Allianz Life of North America $4.9 billion
  8. AXA Equitable $4.6 billion
  9. New York Life $3.8 billion
  10. Nationwide Financial $3.1 billion
  11. RiverSource Life Insurance $3 billion
  12. Pacific Life $2.9 billion
  13. AEGON USA $2.5 billion
  14. AVIVA $2.3 billion
  15. American Equity Investment Life $1.8 billion
  16. Great American $1.67 billion
  17. Thrivent Financial for Lutherans $1.62 billion
  18. Protective Life $1.5 billion
  19. Security Benefit Life $1.2 billion
  20. Fidelity & Guaranty Life $1.0 billion
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