RJ and Makay

Indexed annuities are seeing a record year in sales, variable annuity sales are on the upswing and fixed annuities are in a slump so far. Sales in the first half of the year for fixed annuities were down 37% compared to the first half of 2009, according to data released from LIMRA.  This year, FA sales were at $40.5 billion in the first half, compared to $64.2 billion in the first half of last year. The first half of this year’s total for fixed annuities is also less than the product’s performance for the same time-frame in 2008, which was $47.6 billion, but is higher than 2007’s first half total of $34.2 billion. LIMRA spokeswoman Catherine Theroux said, “We aren’t surprised by the decrease in fixed annuity sales. In this low-interest rate environment, consumers are reluctant to lock into a long-term fixed annuity.”

“This is definitely the year of the indexed annuity!” said Sheryl J. Moore, President and CEO of AnnuitySpecs.com.  The 52^nd edition of AnnuitySpecs.com’s Indexed Sales and Market Report showcases the news. Forty-three indexed annuity carriers participated in this year’s report, which represents 99% of indexed annuity production.

Total second quarter sales were $8.3 billion, down 0.1% from the same period last year. Compared to the previous quarter, sales were up over 22.8%. Moore maintains that with CD rates being at 1% and fixed annuities crediting a 3.65% on average, it is no surprise that this was the second-highest quarter for indexed annuity sales.  As for the carriers, Allianz Life continues to be number one in the market, with a 19% market share. Maintaining second place is Aviva, with American Equity, Lincoln National and North American Company following, respectively.  Allianz Life has the number one selling indexed annuity for the fifth straight quarter: MasterDex X.