While overall annuity sales are stalling, fixed indexed annuities continue to gain momentum.
For instance, Industry-wide annuity sales in the U.S. during the first quarter of this year reached $52.7 billion, which represented a 6.9 percent decrease from $56.6 billion in the previous quarter. This is according to sales results for the U.S. annuity industry compiled by The Insured Retirement Institute (IRI), based on data from Beacon Research, an independent research company and application service provider and Morningstar, Inc., provider of independent investment research.
Also, fixed annuity sales tumbled 9.5 percent from $23 billion in the fourth quarter of 2014 to sales of $20.9 billion. However, although sales for the quarter dropped from previous levels, they are still way above early 2013 levels. “While quarterly fixed annuity sales were down from five-year highs set in 2014, sales remained strong overall and are nearly 40 percent above where they were two years ago,” according to IRI.
However, the shining star in the annuity sales picture is fixed indexed annuities (FIAs). According to Beacon Research, fixed indexed annuity sales in the U.S. remained strong this quarter, despite the slowdown in fixed annuity sales.