Fixed Annuity Sales Up 50%; Market Share At 44%
While variable annuities are beginning to recover from recent poor equity market conditions–their sales fell just 2% in the first quarter–fixed annuities continued their rapid growth, according to new figures from LIMRA International, Windsor, Conn.
In terms of sales, FAs posted a 50% gain over first quarter 2001 to reach $22.1 billion.
In what is yet another sales record for the line, FAs also saw their market share grow to over 44%, a level not seen for nearly seven years.
If the remainder of 2002 is like the first quarter, FA and VA sales could end the year nearly neck-and-neck. Because of the increasing market share for FAs, the growth of this line was enough to keep total annuity sales growing by 16%, reaching $49.7 billion for the quarter.