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.”