Net flows of cash into variable annuities fell to $7.5 billion during the second quarter, down from $8.7 billion in the second quarter of 2007.

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

Thanks in part to the positive flow of cash, VA net assets rose to $1.4 trillion at the end of the second quarter, up 0.1% from the total recorded a year earlier.

Qualified retirement plans accounted for about 65% of total VA sales premium volume, NAVA says.

Total sales fell to $42 billion, from $47 billion.

The share of assets invested in stock investment funds fell to 55%, from 61%. The share flowing into fixed accounts rose to 20%, from 18%, NAVA says.