variable annuities
Annuities under new regulatory scrutinyPosted by RJ and Makay on Feb 23, 2012 |
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Annuity products that provide guaranteed income benefits in innovative ways should be classified as hybrids, say a group of state regulators. The recommendation is sure to catch the attention of producers, distributors and carriers. One of the industry’s top sellers—the guaranteed life withdrawal benefit (GLWB), which is often sold with a variable annuity (VA), would come under additional regulatory scrutiny.
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.
Third-quarter net variable annuity sales were $8.8 billion, the highest level since Q3 2007 sales of $8.9 billion, the Insured Retirement Institute (IRI) announced Tuesday. Variable annuity sales were $39 billion, down 2% from last quarter and up 14% from the year ago period. Year-to-date, total variable annuity sales are over $118 billion, 18% above the 2010 level.
