Buyers of 2 different types of fixed annuity contracts are sending mixed messages about interest rates.[@@]
FA buyers’ growing interest in multi-year contracts has surfaced in results from the quarterly FA market survey conducted by Beacon Research Publications Inc., Evanston, Ill.
The firm bases the survey report on data for 213 U.S. fixed annuity products from 47 manufacturers.
Contracts with 1-year guarantee periods accounted for 77% of sales of “book value” fixed annuities during the second quarter, down from 82% during the second quarter of 2004, Beacon says.
But, in the “market value adjusted” fixed annuity market, products with shorter guarantee periods accounted for about 40% of sales, up from 36% in the second quarter of 2004, Beacon says.