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February 25, 2013 at 09:26 AM
Annuity sales over all were down for the last quarter of 2012, but LIMRA found deferred and indexed annuities were among the most successful classes.
Total annuity sales fell 8% to $219 billion in 2012, with fourth-quarter sales of $52.6 billion, according to LIMRA’s fourth-quarter 2012 U.S. Individual Annuities Sales survey. Deferred annuity sales were over $1 billion. Fourth-quarter sales were $390 million, up from $160 million in the first quarter of 2012.
“As an emerging market, DIAs have experienced significant growth in 2012,” Joe Montminy, assistant vice president and director of LIMRA annuity research, said in a statement. “We see new companies entering this market and existing players launching new products, targeting younger boomers looking to create an income stream when they retire.”
Although deferred annuities represented less than one-quarter of total annuity sales, Montiminy predicted they would continue to show strong growth. “LIMRA estimates that collectively consumers age 45-59 have almost $10 trillion in financial assets so we anticipate these products will to continue to have remarkable growth,” he said.
