Individual annuity sales dropped 3% year-to-date through September 2005 when compared to the same period in 2004.
The overall total of $162.5 billion was comprised of $101.8 billion in variable annuity sales and $60.7 billion in fixed annuity sales, according to new figures from LIMRA International, Windsor, Conn.
VA sales improved 1% year-to-date following a 13% increase in the third quarter. Fixed annuity sales dropped significantly in the third quarter, down 24% compared to 3Q 2004, and down 8% year-to-date.
Fixed annuity sales had held steady through the first half of 2005 due mainly to the sharp increase in sales of equity-indexed annuities, while book value and market value adjusted sales had decreased. However, in the third quarter, EIA sales dropped 3% compared to 3Q 2004, and every category of fixed annuity except immediate annuities saw 3Q sales fall.
Year-to-date, EIA sales are up 27% and fixed immediate sales up 8%, while structured settlements decreased 2%, book value sales dropped 23% and MVA sales fell 31%.
