Beacon's Fixed Annuity Premium Study Reports Fourth Quarter's Fixed Annuity Sales

U.S. sales of fixed annuities were an estimated $19.6 billion in fourth quarter 2009, according to data from the Beacon Research Fixed Annuity Premium Study.1 Quarterly sales were down 43% and 11% compared to fourth quarter 2008 and third quarter 2009, respectively. In calendar year 2009, total market sales were an estimated $104.3 billion, 2% below 2008.

By product type, estimated sales in fourth quarter 2009 were: book value2 - $9.0 billion; indexed - $6.9 billion; market value-adjusted (MVA) - $1.8 billion, and; fixed income3 - $2.0 billion. Results were behind the near-record levels of fourth quarter 2008. MVAs dropped 76%, book value annuities fell 47%, income annuities fell 17%, and indexed annuities declined 4%. Sequentially, income annuities posted a small 1% increase. Estimated sales shrank for the other product types: MVA, -39%; book value, -9%, and; indexed -6%. The indexed share of sales rose to an eight-quarter high of 35%, but book value annuities remained the dominant product type with a 46% share...

Newswire: Beacon's Fixed Annuity Premium Study Reports Fourth Quarter's Fixed Annuity Sales