Good and bad news hit annuity sales through financial institutions in 2013, according to figures released in the annual BISRA Report.
Fixed annuities led the way, growing 39 percent from the previous year, but premiums continue to swoon, falling 36 percent since the record high in 2008.
“We saw a nice progression as the year unfolded and in the year-end tally we’re seeing meaningful growth in fixed annuities for the first time in five years,” said Janet Cappelletti, Head of Research at BISRA.
“Monthly sales of fixed products were up in nine out of twelve months while variable annuity sales peaked in April,” said Cappelletti. “The tides turned in July when fixed annuities outsold variables for the first time since April 2011.”
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In all, total annuity sales topped $35 billion last year at financial institutions.
By the numbers
* Fixed sales production at financial institutions swelled to $16.6 billion in 2013
* This elevated the bank channel to the second largest distribution channel in the industry for fixed annuities behind the independent agent channel.
* AIG more than doubled production and maintained its status as the number one fixed annuity provider at banks for the eighteenth consecutive year.