Total bank annuity sales increased 10.5% in May to almost $4.8 billion, according to a survey by Kenneth Kehrer Associates, sponsored by Jackson National Life Insurance Company, Lansing Michigan.
“All bank fixed annuity sales surpassed the previous record of $4.3 billion, set just in April,” says Brad Powell, president of Jackson Nationals institutional marketing group. “In May, bank fixed annuity premium from all insurance companies was 65% above year-ago levels.”
Kenneth Kehrer, whose Princeton, N.J. research firm conducts the survey, notes that the May survey found an odd result: simultaneous strong growth in both fixed and variable products.
“Its unusual for both VAs and fixed to go up in the same month,” Kehrer says. “Usually, you see offsetting trends between the two types of products. This suggests theres a strong potential for another record annuity year.”
Industry-wide bank VA sales were up 12%, to $1.1 billion in May. Bank VA sales have now increased in two of the past three months, notes Powell, and Mays total was 21% above year-ago levels.