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Bank Annuity Sales Soar

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Bank annuity sales rose to $3.5 billion in July, up 17% from the July 2005 total, according to Kehrer-LIMRA.

Banks sold more fixed than variable annuities for the first time in 11 months, Kehrer-LIMRA reports.

Kehrer-LIMRA, an arm of LIMRA International, Windsor, Conn., gets the bank annuity sales figure by surveying a national sample of banks with assets of $4 billion or more.

Bank fixed annuity sales rose to $1.8 billion in July, up 13% from the total for July 2005, but bank sales of variable annuities fell to $1.7 billion, from $1.8 billion.

Greg Salsbury, an executive at Jackson National Life Insurance Company, Lansing, Mich., a unit of Prudential P.L.C., London, that sponsors the survey, says VA sales were hurt by volatility in stock prices.

But the ratio of VA to FA sales rose to $0.94 to $1 in July, up from $0.88 to $1 in July 2005, according to Kehrer-LIMRA.