NU Online News Service, May 23, 3:45 p.m. – The National Association of Variable Annuities, Reston, Va., is reporting $8.2 billion in net flow of new cash into U.S. variable annuities for the first quarter on $26 billion in total premium flow, up from $5.7 billion in net flow on $28 billion in total premium flow for the first quarter of 2001.
Total premium flow includes shifts of assets from one annuity contract to another.
NAVA also released annual variable annuity results for 2001.
U.S. insurers generated $30 billion in net flow for the year on $113 billion in total premium flow, compared with $44 billion in net flow on $137 billion in total premium flow for 2000.
NAVA notes that the latest performance figures are the first it has published that provide net flow statistics, as well as total premium flow statistics. NAVA produced the new figures with help from VARDS, a unit of Wachovia Corp., Charlotte, N.C.
“It is imperative our industry capture and release premium flow data on a net flow basis in order to provide a true and accurate picture of the amount of new money flowing into the industry,” Mark Mackey, NAVA’s chief executive, said in a statement about the new net flow figures.