During the first quarter of 2010, sales of fixed annuities in depository institutions were an estimated $4.26 billion, according to the Beacon Research Fixed Annuity Premium Study. This was a decrease of 30% from the prior quarter and a decline of 61% compared with the first quarter 2009.
Additionally, The BISA-Singer’s Bank Holding Company (BHC) Annuity Index declined 2% in the first quarter of 2010, according to the Bank Insurance and Securities Association (BISA).
The Index is an average based on quarterly annuity (both fixed and variable) revenues (not sales) at 10 large bank holding companies as reported to the Federal Reserve Board. The index decreased from 97 in the fourth quarter to 95 in the first quarter. Aggregate annuity revenue at the 10 bank companies covered decreased 4 percent to $273.92 million from $285.59 million in the previous quarter (Click here for charts and graphs).
“Despite the difficult environment for fixed annuities, half of the banks in the Index were able to register overall gains in the quarter. Variable annuities are taking up much of the slack, apparently” commented Andrew Singer, editor of the Index.