Sales of fixed indexed annuities edged up 5 percent in 2012, the only annuity category to enjoy positive revenue growth in 2012, according to a new report.
LIMRA, Windsor, Conn., discloses this finding in a report that reveals fourth quarter and year-to-date annuity sales for 2012. The data is based on sales reported by 57 companies representing 95 percent of total sales.
Sales of fixed indexed annuities in the fourth quarter totaled $8.5 billion, up two percent over the $8.3 billion recorded in the fourth quarter of 2011. For all of 2012, indexed annuities totaled $33.9 billion, up five percent from the $32.2 posted in 2011.
Other fixed annuities suffered moderate to steep sales declines in 2012. Chief among them: book value annuities, which fell 21 percent in the fourth quarter ($4.9 billion versus $6.2 billion for the year-ago period) and 29 percent for all of 2012 (21.2 billion versus $29.9 billion in 2011.)