Close Close

Life Health > Annuities > Variable Annuities

Bank Annuity Sales Rise In December

Your article was successfully shared with the contacts you provided.

Thanks largely to increased demand for variable annuities, bank sales of annuities in December 2006 were up 7% over the total from a year earlier, according to a survey by Kehrer-LIMRA.

Financial institutions sold $3.2 billion of annuities in December 2006, up from $3 billion in December 2005, reports Kehrer-LIMRA, a unit of LIMRA International, Windsor, Conn. The monthly survey is based on a national sample of banks with at least $4 billion in assets.

“Variable annuities have outsold fixed annuities in banks in 10 of the last 12 months,” said Kenneth Kehrer, the head of Kehrer-LIMRA.

Fixed annuity sales in banks fell 7% from the December 2005 total, the survey shows. Sales of variable annuities, which clocked in at $1.8 billion every month from August 2006 to December 2006, were up 20% over $1.5 billion in December 2005.

In December, banks sold $1.29 in variable annuities for every $1 of fixed annuities. A year earlier, VA sales were about the same as FA sales.

The survey was cosponsored by Jackson National Life Distributors L.L.C., a subsidiary of Prudential P.L.C., London.