Annuity sales through financial institutions increased nearly 11% in the third quarter of 2011 compared to the comparable period one year ago, according to a new report.
Kehrer-LIMRA, a subsidiary of LIMRA Services, Windsor, Conn., published this finding in a summary of results from its monthly bank annuity sales survey. The results are based on a national sample of banks that have a minimum of $4 billion in assets.
The participating institutions account for about one-third of all bank annuity sales.
The survey reports that bank annuity sales increased to $9.2 billion in third quarter from $8.3 billion in the third of 2010, a 10.8% rise.
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The third quarter figure is, however, down from the $10.1 billion recorded in the second quarter of 2011.
Variable annuity sales through financial institutions in the third quarter totaled $5.2 billion, up 24% from the $4.2 billion posted in the third quarter of 2010.
Fixed annuity sales through banks topped out at $4.0 billion in the year quarter, a 5% decline from the year-ago period.
The Kehrer-LIMRA report also shows the average effective yield on bank fixed annuities at 1.24% as of September 15, below the average 5-year CD rates of 1.34%. This compares with an average effective yield and average 5-year CD rate of 1.61% and 1.71% respectively, for the same period one year ago.
Separately, a new report from research firm Hearts & Wallets LLC, Hingham, Mass., finds that investors who use an insurer as their primary firm invest nearly 20% of assets in annuities.