Close Close
Sign In
Newsletters
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
Podcast Center Video Center Webcasts Resource Center Events
About ThinkAdvisor Contact Us Advertise With Us Asset & Logo Licensing Sitemap Terms of Service Privacy Policy Copyright © 2024 ALM Global, LLC. All Rights Reserved.
ThinkAdvisor

Life Health > Annuities > Fixed Annuities

Bank Annuity Sales Ride A Rollercoaster

By Trevor Thomas

X
Your article was successfully shared with the contacts you provided.

NU Online News Service, Feb. 6, 2004, 5:15 p.m. EST – Bank annuity sales were both up and down in December 2003.[@@]

Combined bank sales for fixed and variable annuities amounted to $3.5 billion. That figure is 6% higher than the November 2003 sales total, but it’s 8% lower than the December 2002 total, according to the Kehrer-Jackson National Monthly Bank Annuity Sales Survey.

Survey figures show that bank annuity sales were on a rollercoaster throughout the last 4 months of 2003.

The banks did great in September and miserably in November. December was somewhat better than November.

But “December’s sales were the second lowest monthly total during 2003,” observes Brad Powell, president of the institutional marketing group at Jackson National Life Insurance Company, Lansing, Mich., which sponsors the monthly survey.

Overall, however, Powell expresses satisfaction with banks’ 2003 annuity results. He notes that VA sales increased in December for the first time in 8 months. VA sales rose to $1.3 billion in December. Sales were 11% higher than in November and 30% higher than in December 2002.

Sales of fixed annuities amounted to $2.2 billion. FA sales were up 5% from the previous month but down 21% from the comparable month in 2002.

Kenneth Kehrer, whose Princeton, N.J., research firm conducts the monthly survey, says banks’ FA sales have suffered from the narrow spreads between the rates currently available from carriers and the rates offered on bank certificates of deposit.

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.