Variable annuity sales in banks during February showed signs of recovering from their recent slump, according to a survey released by Kenneth Kehrer Associates, Princeton, N.J. and Jackson National Life Insurance Company.
The survey monitors annuity sales from a national sample of 30 banks, S&Ls and credit unions.
Although VA sales in banks during February were down 3% from January, the daily sales rate was actually up, says Brad Powell, president of Jackson Nationals institutional marketing group, which sponsors the monthly survey. He notes that February had 20 business days, compared to 22 in January.
“Thus, we would have expected February VA sales to be down 9%, even if they maintained the same daily sales rate,” Powell says.
Fixed annuity sales in banks of $1.76 billion for February were down 13% from a month earlier, their biggest setback since September, when they dropped 26% from month-before levels.
Still, banks sold $3.91 in fixed annuities for every dollar of variable annuities in February, and the months fixed annuity total was 81% above the same month a year ago.