Fixed annuity sales in the first quarter of 2012 climbed almost 23% from a year ago and an income annuity was the quarter's bestselling product for the first time, according to Beacon Research's Fixed Annuity Premium Study. Indexed annuities rose nearly 9%.
"Both product types did well despite lower interest rates due to demand for guarantees in general and reliable retirement income in particular," Jeremy Alexander, CEO of Beacon Research, said in a statement. "The success of New York Life's deferred income annuity also helped boost overall income annuity results, and indexed annuity cap rates looked comparatively good relative to CD and annuity fixed rates."
Total fixed annuity sales were $16.9 billion in first quarter 2012. Fixed rate market value adjustments were up 1.6% from the prior quarter, while sales of the other product types declined slightly for an overall decrease of 2.2%. Results were 8.8% behind the year-ago period on lower fixed-rate annuity sales.
| Estimated Sales by Product Type (in $ millions) | |||||
| Total | Fixed Rate Non-MVA | Fixed Rate MVA | Indexed | Income | |
| Q1 '12 | 16,943 | 5,253 | 1,368 | 8,166 | 2,156 |
| Q4 '11 | 17,330 | 5,409 | 1,346 | 8,352 | 2,221 |
| % change | -2.2% | -2.9% | 1.6% | -2.2% | -3.0% |
| Q1 '12 | 16,943 | 5,253 | 1,368 | 8,166 | 2,156 |
| Q1 '11 | 18,570 | 7,796 | 1,527 | 7,498 | 1,754 |
| % change | -8.8% | -32.6% | -10.4% | 8.9% | 22.9% |
Great American joined the quarter's top five companies for the first time, coming in fifth. Aviva USA moved up a notch and New York Life advanced two, to take second and third place, respectively. Allianz continued as sales leader, and American Equity remained a top-five company. First quarter results for the top five study participants were as follows:
Sales (in thousands) Total Fixed Annuity
Allianz 1,484,018
