Annuity results for year-end 2009 and the fourth quarter show general declines but some modest improvements in spots.
Following is a round-up of findings from several researchers.
LIMRA, Windsor, Conn. reports that total individual annuity sales declined 11% in 2009, to $234.9 billion. In the fourth quarter, overall individual annuity sales fell 2% compared to the previous quarter, to $53.3 billion–a 22% decline from the fourth quarter of 2008.
By product types, LIMRA found the following:
–Variable annuity sales were down 18% for the year, but this was actually an improvement from the 26% decline seen in the first six months of 2009. Fourth quarter VA sales improved slightly compared to third quarter, up 3% to $32.6 billion, but were down 3% when compared to fourth quarter 2008. VA sales totaled $127 billion.
–Fixed annuity sales totaled $107.9 billion for the year, a 1% decline from 2008. Fourth quarter FA sales fell 10% compared to third quarter, to $20.7 billion, and were down 40% from the fourth quarter 2008, when FAs experienced strong growth.
–Indexed annuity sales increased 9% compared to 2008, to a record $29.4 billion,. These sales reached a record high in the second quarter but were down 5%, to $6.9 billion, in the fourth quarter from the third quarter.
–Book value annuity sales rose 2% for the year, compared to 2008. They had a very strong first quarter but were down for 3 straight quarters. In the fourth quarter, their sales dropped 10% from the previous quarter and fell 43% from fourth quarter 2008.
