Low interest rate caps have been hurting indexed annuity sales, according to Jack Marrion.
LIMRA, Windsor, Conn., and AnnuitySpecs.com, Pleasant Hill, Iowa, reported Wednesday that U.S. individual indexed annuity sales amounted to $7.1 billion in the first quarter.
LIMRA said sales were up 1% from the first quarter of 2010; AnnuitySpecs.com estimated sales were up 5%.
Marrion, president of Advantage Compendium Ltd., St. Louis, another company that tracks the indexed annuity market, says in a commentary that the rate of increase is disappointing, because the first quarter of 2010 was a weak quarter for indexed annuity sales.
The current interest caps on typical indexed annuities is 3% or 4%, Marrion says.