NU Online News Service, Jan. 20, 2004, 3:49 p.m. EST – Bank sales of annuities fell for the second straight month in November 2003.[@@]
Bank annuity sales totaled $3.3 billion that month, down from $4 billion in October 2003, according to a monthly survey by Kenneth Kehrer Associates, Princeton, N.J.
Bank annuity sales dropped 27% over 2 months after flirting with a new record in September, says Brad Powell, president of the institutional marketing group at Jackson National Life Insurance Company, Lansing, Mich., which sponsors the monthly survey.
November results were the worst reported for the first 11 months of 2003, Powell adds.
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Sales of both fixed and variable annuities were down.
Bank fixed annuity sales fell to $2.1 billion in November, down 18% from the total for the previous month and down 22% from the total for November 2002. The monthly FA sales record is $3.5 billion, which was set in May 2002 and matched in July 2002.
Bank VA sales amounted to $1.2 billion. VA sales were 11% lower than in the previous month and 35% lower than in November 2002. VA sales peaked at $1.8 billion per month in May, June and July, says Kenneth Kehrer, whose research firm conducts the bank annuity sales study.
Although bank FA sales were 22% lower in November 2002 than in November 2003, the bank VA sales total was 9% better than the total for the previous November, Powell points out.