Total U.S. annuity sales were down slightly in first quarter in comparison to the fourth quarter of 2011. However, indexed and income annuities showed growth year-over-year, reports the Insured Retirement Institute (IRI), citing statistics from Morningstar and Beacon Research.
Industry-wide, annuity sales in Q1 reached $53.1 billion, a 2.5% drop from the $54.5 billion sold in the fourth quarter of last year.
In the variable annuity (VA) space, total sales dipped 2.7% to $36.2 billion from $37.2 billion in Q4 2011, according to Morningstar. In the first quarter of last year, VA sales totaled $39.1 billion.
Yet, variable annuity net assets hit an all-time high of $1.61 trillion in the first quarter, which equates to a 7.2% jump from $1.5 trillion in the fourth quarter of 2011.
Year-over-year, net variable annuity sales decreased 34.5% to $3.8 billion in the first quarter from the $5.8 billion booked in the same period in 2011. There were $24.3 billion in qualified sales and $11.8 billion in non-qualified sales in Q1, reveals Morningstar.