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October 31, 2002 at 07:00 PM
NU Online News Service, Oct. 31, 3:30 p.m. – Bank sales of fixed and variable annuities fell 7% in August to $4.1 billion, from July’s near-record $4.2 billion, the Kehrer-Jackson National Monthly Bank Annuity Sales Survey reports.
Both fixed and variable annuity sales declined, according to the survey, compiled by Kenneth Kehrer Associates, Princeton, N.J.
Although down from the month before, August sales were up 4% over year-ago levels, notes Brad Powell, president of Jackson National Life Insurance Company’s institutional marketing group, which sponsors the monthly survey.
Bank sales of fixed annuities in August were down 5% to less than $3.2 billion. May recorded the all-time high, when banks sold more than $3.5 billion of fixed annuities for the month.
Fixed annuity sales from all insurance companies have now fallen in two of the three months since that record high, the reports notes, although they were still 5% above the same month a year ago.
Fixed annuity sales have benefited from their wide rate over short-term certificates of deposit. The average base crediting rate on fixed annuities was 3.9% in mid-August, which was 201 basis points higher than the average one-year CD, the report notes. The average fixed annuity with a first-year bonus was crediting 308 basis points more than one-year CDs.
