Fixed annuity sales by banks and other depository institutions in fourth quarter dipped by 48% in 2010 from the same period in 2009, according to a new report.
The American Bankers Insurance Association, an affiliate of the American Bankers Association, Washington, published this finding in a summary of results from a new study of fixed annuities conducted on ABIA’s behalf by Beacon Research, Evanston, Ill.
Fixed annuity sales in the fourth quarter totaled $3.2 billion, the report found. Quarter-to-quarter sales declined 20%. And sales for calendar year 2010 fell 53% to an estimated $15.5 billion.
Large decreases in sales of fixed rate annuities without market-value adjustments (MVAs) drove results relative to all three periods, the report says.
Although results decreased compared to the fourth quarter of 2009, the study noted improved sales by one-third of bank channel carriers. Some 22% did better quarter-to-quarter.
–Warren S. Hersch