Sales of annuities in banks are continuing to fall as a result of weakness in demand for fixed annuities.
Total bank annuity sales fell to $2.8 billion in October 2005, down 25% from the total for October 2004, according to Kenneth Kehrer Associates, Princeton, N.J.
Variable annuity sales increased 23%, to $1.6 billion, but fixed annuity sales fell 52%, to $1.2 billion.
VA sales have exceeded FA sales for 2 straight months. This is the first time VA sales have beaten FA sales 2 months in a row since the third quarter of 2000, says Kenneth Kehrer, head of the firm that conducts the bank annuity sales survey.
The ratio of FA sales to VA sales fell to $0.74 to $1 in October 2005, down from $1.87 to $1 in October 2004, Kehrer says.