MetLife leads in VA sales

MetLife Inc., the largest U.S. life insurer, kept the top spot in variable annuity sales in the third quarter by cutting rates to attract customers looking for a consistent return amid equity market declines. The company sold $8.56 billion of the retirement products, compared with $4.66 billion a year earlier, trade group LIMRA reported on its website. Industrywide VA sales rose to $40.2 billion, from $34.9 billion. “Consumers' demand for guaranteed lifetime income helped sustain variable annuity sales,” Joseph Montminy, assistant vice president for LIMRA annuity research, said in a statement. “The equity markets in the third quarter were the most volatile we have experienced since the financial crisis began in late 2008.” The S&P 500 slipped 14% in the third quarter. MetLife's rate reduction this year caused a “fire sale” effect in variable annuities, William Mullaney, president of the insurer's U.S. business, said during an earnings conference call Oct. 28.