Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards

Life Health > Annuities > Fixed Annuities

FA Sales Edge Lower

Your article was successfully shared with the contacts you provided.

Total U.S. sales of fixed annuities fell to about $16.5 billion in the fourth quarter of 2006, down 1.1% from the total for the fourth quarter of 2005.

Sales for the full year fell 3.3%, to $71 billion, according to Beacon Research Inc., Evanston, Ill., which bases its figures on a survey of 48 insurance companies.

For the full-year, book value annuities accounted for $30 billion in fixed annuities sales; indexed annuities, $25 billion; market-value-adjusted annuities, $9.6 billion; and immediate annuities, $6.1 billion.

Sales of MVA annuities increased 73% from the 2005 sales total, but sales of the other types of annuities decreased, Beacon says.

“In fourth quarter and throughout 2006, fixed annuities generally had a hard time competing with bank certificates of deposit as well as [with] variable annuities with guarantees and other equity-based investments,” says Jeremy Alexander, chief executive of Beacon.


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.