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Retirement Planning > Retirement Investing > Annuity Investing

IRI: Total annuity sales edge down in 3Q, income annuities sales rise

By Warren S. Hersch

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Annuity sales dipped 4.3 percent in the third quarter,

The Insured Retirement Institute (IRI), Washington, D.C., today published this finding on Monday from an annuity industry sales survey based on data reported by Morningstar, Inc. and Beacon Research.

Industry-wide annuity sales for the third quarter reached nearly $52.9 billion, down from $55.3 billion in the previous quarter.

However, income annuity sales increased to nearly $2.4 billion in the third quarter, up 3.8 percent from about $2.3 billion in the second quarter. Income annuity sales were also up 6.7 percent year-over-year from $2.2 billion in the third quarter of 2011.

Indexed annuity sales totaled $8.7 billion, down just 1.2 percent from $8.8 billion in the second quarter and up 0.5 percent year over year from just under $8.7 billion in the third quarter of 2011, the report reveals.

Third quarter variable annuity total sales dipped 4.9 percent to $36.3 billion from $38.2 billion in the second quarter of 2012, according to Morningstar. Year over year, variable annuity sales decreased 7.2 percent from $39.1 billion in the third quarter of 2011. Despite the decline, the report adds, variable annuity net sales for the quarter increased by 44.3 percent to $5.8 billion from $4 billion during the second quarter.

VA sales totaled $24.5 billion for qualified plans and $11.8 billion for non-qualified sales during the third quarter. Fixed annuity sales reached $8.6 billion for qualified plans and $8.0 billion for non-qualified sales during the third quarter.

Variable annuity total net assets reached a new all-time high of $1.62 trillion during the third quarter of 2012, up about four percent from $1.56 trillion in the second quarter.

Total fixed annuity sales for the third quarter were down 3.1 percent to $16.6 billion from $17.1 billion in the second quarter of 2012. Year over year, fixed annuity sales decreased 12.8 percent from $19 billion in the third quarter of 2011, the survey discloses.

For complete annuity sales reporting data, access the PDF version.

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