Whew, annuities have taken a beating lately. According to the latest report from LIMRA, total annuity sales fell for the fourth consecutive quarter (when compared to the same quarter a year earlier.) In the first quarter of 2010, total annuity sales dropped to $51.4 billion, off 24 percent from the first quarter 2009.
Joe Montminy, assistant vice president for LIMRA’s annuity research said, “Despite steady variable annuity sales over the last year, shrinking interest rate spreads have undermined fixed annuity sales–causing total annuity sales to hit an eight-year low this quarter.”
Say it ain’t so, Joe!
In light of the bad news, there’s a silver lining, right?
You betcha–as long as you take more of a big-picture, long-term view, that is.