Variable annuity sales increased 11 percent in the second quarter of 2010, as compared to the prior year, to reach $35.5 billion, according to LIMRA’s U.S. Individual Annuities Second Quarter 2010 Sales Report, which represents 96 percent of the market.
VA sales were 10 percent higher than sales in the first three months of 2010. For the first six months of 2010, VA sales improved 8 percent compared to the first half of 2009, totaling $67.9 billion.
“After five consecutive quarters where VA sales were lingering in the $31-33 billion range, we are finally seeing signs of recovery as VA sales jumped more than $3 billion in the second quarter,” says Joe Montminy, assistant vice president for LIMRA’s annuity research. “In addition, there was broad market growth as most companies in the top 20 experienced VA sales growth this quarter — whereas last year we saw growth concentrated with the top five carriers.”