For the second quarter in a row, fixed annuities outsold variable annuities $35.6 billion to $30.7 billion, according to LIMRA’s U.S. Individual Annuities First Quarter 2009 Sales Report.
“The last time fixed annuities outsold variable for two consecutive quarters was in the first half of 1995,” said Joe Montminy, research director for LIMRA’s annuity research, in a press release. “Consumers, still leery of the volatile stock market and looking for secure, competitive guaranteed rates of return, continued to invest more money into fixed annuities for their retirement income needs.”
With a 74 percent increase, fixed annuities propelled overall individual annuity sales to a six percent gain reaching $66 billion in the first quarter of 2009.