Conning: VAs Return To Profitability

In the long run, the aging of the baby boomers should create unprecedented opportunities for annuity sellers, Christiansen predicts.

But VA vendors will continue to face challenges, even if the stock market recovery continues, Christiansen warns.

One big challenge is 2003 tax-law changes that eliminated the tax advantages that variable annuities once had over mutual funds, Christiansen says.

Another big challenge will be finding better ways to manage the risk of stock market volatility, Christiansen says.