Speak with a Registered Agent: 1-866-223-2121

Speak with a Registered Agent: 1-866-223-2121

Variable Annuities Break Records in 1Q


The finalized first quarter annuity sales have just been released by the Insured Retirement Institute (IRI), as researched by Morningstar and Beacon Research firms.  According to Insurance News Net’s “Variable Annuity Net Assets Reach All-Time High,” variable annuity assets are now $1.61 trillion.  That is the highest they have ever been and an increase of 7.2% from the $1.50 trillion in the fourth quarter of 2011.  Variable annuity sales in the first quarter were down 2.6%, despite the all-time high in their assets.  The sales were $36.2 billion compared to the fourth quarter sales $37.2 billion.

Sales of fixed annuities went from $17.3 billion to $16.9 billion quarter to quarter, a decline of 2.2%.  Even so, income annuities actually increased 23% year to year and indexed annuities increased 9% year to year.  Market Value Adjusted annuities went up 1.6% quarter to quarter.  The consumer demand for guaranteed retirement income has definitely helped the income and fixed indexed annuities have a sales increase.  MVA annuities saw a quarterly increase because adjustments allowed the annuity carriers to credit a higher interest rate.

Overall annuity sales in the first quarter were down 2.5% from the fourth quarter of 2011.  They went from $54.5 billion to $53.1 billion.  IRI President and CEO Cathy Weatherford believes that the annuity market is still strong and is poised for growth.  She attributes the declines to normal market swings and says that the strong presence in the fixed annuity market of indexed and income annuities hints at more future growth.  The record high amount of variable annuity assets also points towards an increasing consumer interest in insured retirement products like annuities.

Written by Rachel Summit

Follow Finance Mama on Twitter https://twitter.com/#!/financemama

For more information about the product mentioned in this article contact us here:

Newest Blog Posts

Information Request Form

If you have questions or would like more information, please complete this form and a licensed professional will be happy to help. For the fastest response, please select 'Phone' as your Contact Preference.

By providing your information and clicking 'Submit' above, you acknowledge that you have read and agree to this site's privacy policy. You also provide your consent to be contacted at the email address or phone number provided above (including any wireless number) by licensed agents or representatives from or on behalf of AFYI Holdings Group, LLC and other companies to provide the information requested and/or offer annuities or financial products. You understand that these calls or SMS messages may be generated using an automated telephone dialing system, a pre-recorded message, or artificial voice. Consent to receive such messages is not a condition to purchase any goods or services. You may opt out at any time by following the instructions in the messages you receive.  Receiving quotes and information through our website is free, and you are under no obligation to purchase any goods or services as a result of this request. You affirm that you are the subscriber of the provided telephone number or that the subscriber authorized you to provide the number. Message and data rates may apply. AFYI Holdings Group, LLC is committed to respecting your privacy and adhering to all applicable laws and regulations, including the Telephone Consumer Protection Act (TCPA).