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2009 saw uptick in annuity sales

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Despite the recovery felt since March 9, the flight to safety continues in certain sectors. Fixed indexed annuities saw a modest increase in the fourth quarter of 2009, according to research from the Insured Retirement Institute and Beacon Research. Fourth quarter sales were over $7 billion, an increase of 3.2 percent over the previous quarter. Total sales for the year topped $30 billion, a year-to-year increase of $3.5 billion.

Fixed annuity sales were down slightly, but only 2 percent less than the record high in 2008, according to the research. Sales fell 8 percent to $20.4 billion. Total sales for the year fell 1.5 percent to just over $105 billion in 2009.

“Fixed annuity sales in 2009 were second only to the record-setting prior year,” Jeremy Alexander, president and CEO of Beacon Research, said. “Due to strong demand for secure retirement savings and income alternatives, 2009 results were achieved despite financial pressures on consumers and other challenges.”