RJ and Makay

For the second consecutive year, indexed annuities had record sales that reached $32.1 billion for all of 2010, says financial services research and consulting firm LIMRA. The increase was 7% more than in 2009, reports LIMRA, which tracks 96% of annuity sales.

In the fourth quarter of last year, indexed annuity sales improved 17% to $8.2 billion. Furthermore, indexed annuities accounted for 43% of fixed annuity sales in the fourth quarter — the first time ever that indexed annuities outperformed fixed-rate deferred annuities products, which generated 40% of fixed annuity sales in the fourth quarter.

“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.