Close
ThinkAdvisor

Retirement Planning > Retirement Investing > Annuity Investing

IRI Survey: Net VA Sales Post 38% Gain in Third Quarter

X
Your article was successfully shared with the contacts you provided.

Net sales of variable annuities surged in the third quarter of 2011, reaching their highest level since the comparable period in 2007, according to a new study.

The Insured Retirement Institute, Washington, D.C., published this finding in a summary of results from a third quarter survey of annuity sales. IRI carried out the survey in collaboration with Beacon Research, Evanston, Ill., and the investment research firm Morningstar, Chicago.

Net variable annuity sales totaled $8.9 billion in the third quarter, up 38% from the $6.4 billion posted in the year-ago period. The current quarter’s total variable annuity sales—net sales plus surrenders, withdrawals, inter- and intra-company changes and benefit payments—reached $39.1 billion, a 15% gain from the $34 billion recorded in the third quarter of 2010.

Variable annuity net assets totaled $1.4 trillion in the third quarter. This represents a 5.5% dip from the $1.5 trillion recorded in the third quarter of 2010, IRI reports.

As a percentage of total assets, IRI says, equities accounted for 39.9% of variable annuity assets. Fixed accounts and allocation assets each accounted for 22.6%, followed by bonds at 12.3% and money markets at 2.7%, IRI reports.

Fixed annuity sales in the third quarter reached nearly $19 billion, a 7.3% dip from the $20.5 billion posted one year ago, IRI says.

Among all fixed annuity sales—book value, market value adjusted, indexed and income—indexed annuities garnered the lion’s share of sales, topping out at $9.008 billion. This compares with $8.972 billion for the year-ago period.

In the third quarter, IRI, adds, indexed annuity sales accounted for 47.5% of all fixed annuity sales. This contrasts with 34%, 11.7% and 6.8% for book value, income and market-value adjusted annuities, respectively.