Net flows of cash into variable annuities rose to $8.7 billion during the second quarter, up 6.2% from the total for the second quarter of 2006.

NAVA, Reston, Va., is reporting those figures in its latest quarterly report on the VA market.

The positive flow of cash helped increase VA net assets to $1.5 trillion at the end of the second quarter, up 4.6% from the total recorded a year earlier.

Qualified retirement plans accounted for about 62% of total VA sales premium volume, NAVA says.

The percent of assets invested in stock investment funds and balanced options increased to about 72%, up from less than 69% a year earlier, NAVA says.