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Total annuity sales reached $240 billion in 2011, an increase of 8% compared to 2010, according to LIMRA’s fourth quarter 2011 U.S. Individual Annuities Sales survey.  After six straight quarters of positive growth when compared to the prior year, fourth quarter 2011 Variable Annuity (VA) sales were flat.  Q4 VA sales, at $38.4 billion, were down 4% compared to Q3 2011. Overall 2011 VA sales grew 13% to reach $159.3 billion.

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.”