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December 01, 2008 at 10:55 AM
U.S. insurers reported strong individual fixed and indexed annuity sales in the third quarter as life sales were dropping.
Although deferred individual variable annuity sales fell 18% from the total for the third quarter of 2007, to $38 billion, sales of deferred individual fixed and indexed annuities increased 46%, to about $28 billion, according to researchers at LIMRA International, Windsor, Conn.
The LIMRA researchers, who base their results on a survey of 59 companies, say the flow of cash into deferred individual indexed annuities was 5.2% higher, and the flow of cash into deferred individual fixed annuities was 4.8% higher.
Investment earnings growth amounted to 0.5% of assets for indexed annuities and 1% for fixed annuities.
Investment losses on deferred individual variable annuities amounted to 8.3% of assets, but the flow of cash into VA contracts increased 2.8%.
Meanwhile, over on the life side, overall individual life premiums fell 4%, and the number of policies sold fell 1%, LIMRA researchers estimate.
