Pensions - Articles - US annuity sales up reports LIMRA

 Total US annuity sales reached $61.4bn in the second quarter, improving 8% from prior year. In the first six months, total US annuity sales increased 10%.

 "This is only the second time we have seen quarterly sales over $60bn since the third quarter of 2011," said Todd Giesing senior analyst, LIMRA Secure Retirement Institute Annuity Research. "Despite declining interest rates during the first six months of this year, fixed annuity sales continue to drive overall annuity sales growth."

 Total fixed annuity sales were $25.2bn in the second quarter, up 34%. Year-to-date sales equalled $49.1bn, a 39% increase.

 Sales of fixed rate deferred annuities (Book Value and MVA) grew 30% in the second quarter and $15.8bn in the first half of the year, a 42% increase compared to last year.

 Index annuity sales grew 40% in the second quarter, setting a new quarterly record of $13bn. This is the first time that quarterly index annuity sales have accounted for more than 50% of total fixed annuity sales, with second quarter sales accounting for 52% of total fixed sales. YTD, indexed annuity sales grew 41%, totaling $24.3bn.

 "With a record quarter of index annuity sales driven by product innovation and expansion of distribution, combined with nothing to indicate that sales will significantly drop in the near future, sales may be pushing $50bn for 2014," noted Giesing.