NU Online News Service, March 28, 5:29 p.m. – Estimated net sales of variable annuities plunged 75%, to $7.5 billion in 2001, from $29.5 billion in 2000, reports the Financial Research Corp., Boston, a subsidiary of the BISYS Group Inc., New York.
Last year was the fifth straight year of falling annual net sales for VA products, FRC says. The firm estimates net inflows to VAs were $47.7 billion in 1997, $40.3 billion in 1998 and $38 billion in 1999.
FRC says fourth quarter 2001 saw the first net outflow from VAs since it began tracking the data in 1995. During the quarter, VA outflows exceeded inflows by an estimated $1.3 billion.