Fixed annuities continued to outsell their variable counterparts in the first quarter, according to data from LIMRA International Inc. of Windsor, Conn.
Fixed annuities continued to outsell their variable counterparts in the first quarter, according to data from LIMRA International Inc. of Windsor, Conn.
For a second consecutive quarter, fixed annuities beat variable annuities, raking in $35.6 billion in sales during the first quarter, a 74% gain from the year-earlier period. By comparison, variable annuities made $30.7 billion in sales, down 27% from the first quarter of 2008.
Most varieties of fixed annuities experienced a leap in demand, particularly the market-value-adjusted contracts.
They experienced a 200% year-over-year gain, to $6.6 billion.
Sales of book-value annuities climbed 102%, to $18.6 billion.
Book-value annuities pay a declared rate of interest for a given period, while market-value-adjusted annuities allow clients to choose and fix the time period and interest rate over which the annuity will grow.
Total annuity sales for the first quarter grew by 6% year-over-year, hitting $66.3 billion.
Additionally, MetLife Inc., the New York-based carrier, was able to move the most annuities overall in the first quarter, totaling $7.59 billion —$3.85 billion in fixed-annuity sales and $3.74 billion in variable annuities. It also was the lead seller in each of those categories.
New York Life Insurance Co. came in second for total annuity sales ($3.82 billion) and fixed annuities alone ($3.61 billion).
TIAA-CREF of New York was second in variable-annuity sales, with $3.48 billion.