U.S. sales of fixed annuities fell in the first quarter when compared both with the previous quarter and the comparable quarter in 2009, according to Beacon Research.
Beacon, Evanston, Ill., says total fixed annuity premium sales dropped by 15% from the fourth quarter of 2009 and by 52% from the first quarter of 2009.
Total sales in the latest quarter amounted to about $16.7 billion, according to Beacon, an annuity tracking firm.
Book value annuities took the sales lead for the quarter, with premiums at $6.8 billion, the firm says. Indexed annuities came in second, at $6.7 billion, followed by fixed income annuities at $1.8 billion and market value-adjusted annuities at $1.3 billion.
Results for all four annuity product types were behind results for both the prior quarter and for the first quarter of 2009, the firm says. Relative to the previous quarter, MVA sales dropped 25% and book value annuity sales dropped 24%. Income annuity sales were down 7%, and indexed annuity sales fell 2%.
Compared to a year ago, when fixed annuity sales hit a record high, the results from the latest quarter were all down, according to Beacon. Book value annuity sales fell 64%; MVAs fell 80%; income annuities fell 6%; and indexed annuities fell 5%.