After achieving sizable gains through the bank channel in the second quarter, the products are on track to achieve record gains for all of 2013.
So notes Beacon Research in its latest quarterly industry premium survey. The report reveals that indexed annuity sales hit a record high of $10.1 billion in the third quarter, up from $8.7 billion in the third quarter of 2012, 15.1 percent increase.
Also showing sizeable, double-digit gains in the third quarter were fixed income annuities ($2.8 billion sales, up 10.1 percent from the $2.4 billion posted one year ago); and fixed rate non-market value-adjusted (MVA) annuities, which rose to $7.1 billion from $4.4 billion for the respective third quarter periods, a 60.9 percent rise.
Sales of fixed rate MVA products enjoyed the greatest increase in the third quarter, rising 131.5 percent to $2.5 billion in the third quarter from $1.1 billion one year ago.
“Quarter-over-quarter sales were up among all fixed annuity product types and, for the first time since 2008, in all major distribution channels,” says Beacon Research CEO Jeremy Alexander in a press statement. “Sales of indexed annuities surpassed $10 billion for the first time, and nearly two thirds of carriers experienced an increase in MVA annuity sales during the quarter.”
For the year to date, indexed annuity sales increased to $27 billion from $25.7 billion, a 4.7 percent increase. Sales of income annuities over the same period rose 10.9 percent to $7.6 billion from $6.8 billion.
Sales of fixed rate non-MVA and MVA products increased by 5.7 percent and 26.6 percent, respectively, rising to $15.3 billion and $4.8 billion.