Following IRI's announcement Monday that variable annuities had a record year in 2010, Beacon Research reported Tuesday in its quarterly Fixed Annuity Premium Study that fixed indexed and income annuities also broke sales records in 2010.
Indexed annuity sales rose 6% for the year to over $31 billion, and claimed 48% of sales, its largest share in the eight years Beacon has conducted the survey. Likewise, income annuities claimed their largest share of sales in the last eight years with 11%. Sales grew 2% to $8 billion.
"Both product types benefitted from growing interest in guaranteed lifetime retirement income and protection from downside risk," Jeremy Alexander, CEO of Beacon Research, said in a statement.
For the fourth quarter, indexed annuity sales reached $8 billion, Beacon estimates, a 16% rise over sales in the fourth quarter of 2009. Year-to-year income annuity sales increased in the fourth quarter as well, though not as much; sales grew 4% to $1.9 billion. Quarter-to-quarter sales for indexed and income annuities fell 7% and 11%, respectively.