Whew, annuities have taken a beating lately. According to the latest report from LIMRA, total annuity sales fell for the fourth consecutive quarter (when compared to the same quarter a year earlier.) In the first quarter of 2010, total annuity sales dropped to $51.4 billion, off 24 percent from the first quarter 2009.
Joe Montminy, assistant vice president for LIMRA’s annuity research said: “Despite steady variable annuity sales over the last year, shrinking interest rate spreads have undermined fixed annuity sales–causing total annuity sales to hit an eight-year low this quarter.”
Say it ain’t so, Joe.
In light of the bad news, there’s a silver lining, right?