NU Online News Service, Aug. 28, 10:05 a.m. – U.S. variable annuities attracted only $29 billion in total premium flow in the second quarter, down 20% from the flow total for the second quarter of 2000, according to the National Association for Variable Annuities, Reston, Va.

Total premium flow for the first half fell 21%, to $58 billion.

NAVA defines “total premium flow” as the sum of premiums from newly sold contracts and premium payments on existing contracts.

NAVA gets the flow figures and other variable annuity statistics from VARDS, a unit of Info-One Inc., Campbell, Calif.

Net asset and investment objective for 2000 were not immediately available, but NAVA says the combined net assets of U.S. variable annuities reached $910 billion June 30. That asset total is up 3% from March 31, but down 6.5% from Dec. 31, 2000.

The share of assets in equity funds fell to $564 billion, or 61.9% of assets, at the end of the second half, down from $623 billion, or 64% of assets, at the end of 2000. Contract holders increased their holdings of bond funds and money-market funds. Holdings in balanced funds held steady.