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LIMRA: robust Sales within the 1st half 2011 Propel Total Annuity Sales to succeed in $240 Billion in 2011

WINDSOR, Conn., Feb. 16, 2012 — Total annuity sales increased eight p.c in 2011, compared to 2010, to succeed in $240.3 billion, in step with LIMRA's fourth quarter 2011 U.S. Individual Annuities Sales survey, that represents information from ninety four p.c of the market.

“While we have a tendency to saw important growth within the 1st half 2011, third and fourth quarter annuity sales fell quarter-over-quarter, tempering the double-digit growth seen at the mid-year mark,” said Joseph Montminy, LIMRA assistant vice chairman, annuity analysis. “In this economic surroundings, VA firms are rigorously managing the risks related to their guaranteed living profit riders, that has had an impression on overall sales trends.”

In the fourth quarter, total annuity sales dropped slightly to $57.4 billion.

After six consecutive quarters of positive growth in comparison to the previous year, fourth quarter VA sales were flat; and compared to the previous quarter, VA sales were down four p.c, totaling $38.4 billion. However, overall VA sales sustained thirteen p.c growth in 2011, growing to $159.3 billion, that exceeds total VA sales from 2008.

Total fastened annuity sales were $19.0 billion, falling 2 p.c within the fourth quarter. In 2011, fastened annuities slipped one p.c, to succeed in $81.0 billion. With the Federal Reserve stating it'll keep interest rates low through 2014, we have a tendency to expect quarterly fastened annuity sales to stay between $18-22 billion in 2012.

Indexed annuity sales remained comparatively steady, up one p.c within the fourth quarter, compared to previous year, to succeed in $8.3 billion however down 5 p.c from the previous quarter. Year-to-date, indexed annuities were flat compared to 2010, totaling $32.2 billion. For the second consecutive quarter, indexed annuity sales outperformed sales of ancient fastened annuities (book-value and market-value adjusted), capturing forty four p.c of the fastened annuity market.

Fixed immediate annuity sales were a record breaking $8.1 billion in 2011, up seven p.c from 2010. within the fourth quarter, immediate annuities grew six p.c within the fourth quarter, compared to previous year, to succeed in $1.9 billion. “The demographics of the U.S. population can not be ignored. There are currently quite forty two million retirees within the U.S. and therefore the variety is predicted to grow to sixty five million by 2025,” added Montminy. “Many of those retirees got to establish a guaranteed income stream that immediate annuities will offer. we have a tendency to anticipate demand for this product can grow for several years to return.”

Book-value sales dropped 5 p.c within the fourth quarter, to succeed in $6.3 billion. In 2011, book-value sales were $30.4 billion, level with sales from 2010. Market-Value Adjusted (MVA) sales fell fourteen p.c within the fourth quarter, to $1.2 billion. Total MVA sales in 2011 were $5.2 billion, dropping fifteen p.c compared to 2010.

The fourth quarter Annuities business Estimates Chart will be found within the updated information Bank. to look at variable, fastened and total annuity sales over the past ten years, please visit Annuity Sales 2002-2011.

LIMRA Contact:

Catherine Theroux, 860-285-7787, www.limra.com.