Indexed annuity sales rose to $8.7 billion in the third quarter, up 16% from the total recorded in the third quarter of 2009.
LIMRA, Windsor, Conn., and AnnuitySpecs.com, Pleasant Hill, Iowa, are reporting identical third-quarter sales totals and percentage increase figures.
Joseph Montminy, an assistant vice president at LIMRA, is calling the current market for indexed annuities “ideal,” with “lots of volatility in the equities markets coupled with low credited rates and declining interest rate spreads on traditional fixed-rate annuities.”
Indexed annuities now have 41% of the fixed annuity market, LIMRA found.
Sales of variable annuities rose 9%, to $35 billion, and sales of fixed annuities fell 10%, to $21 billion.
Total individual annuity sales rose just 1% in the third quarter, to $56 billion.