Individual life insurance sales dropped 20 percent in the second quarter of 2009, following on the heels of a 26 percent drop in the first, according to LIMRA. That’s the steepest six-month decline in nearly 70 years. Premium sales overall have fallen 23 percent so far this year.
“Despite recording the steepest six month decline since the second half of 1942, the second quarter gave us reasons to be hopeful,” said Ashley Durham, LIMRA senior analyst. “Forty percent of companies were able to increase their total individual life sales over the second quarter of 2008 (this compared to less than 30 percent in Q1).”
Sales of variable annuities, which have the strongest ties to the market, continue their downward trend, off 50 percent for the second quarter and 55 percent for the first six months of 2009. Universal life sales dropped 29 percent and 27 percent for same periods respectively. These latest number reflect four quarters in a row of double-digit declines.