An investment banking firm expects equity indexed annuity sales will shine this year in an otherwise lackluster annuity market.[@@]
Analysts from Fox-Pitt, Kelton Inc., New York, point to results from LIMRA International showing second quarter fixed annuity sales were up just 1% from a year earlier but increased 14% from the first quarter when a 17% growth in EIAs were factored in.
Fox-Pitt expects fixed annuity sales will be down around 13% this year, excluding EIAs. It looks for EIA sales growth of 28% and a VA sales increase of 3.6%.
“Combined, sales would be up 1.3% for the full year,” Fox-Pitt says.
The company’s analysts expect weak growth in fixed annuities in the year ahead due to profitability pressures and low interest rates.