Windsor, CT, January 3, 2003 — With demand for fixed annuities remaining strong, total industry sales increased 27 percent through the first three-quarters of 2002, reaching $170.8 billion, according to preliminary estimates from LIMRA International. Sales of variable annuities increased 6 percent to $88.3 billion, while fixed annuity sales increased 60 percent from the same period last year to reach $82.5 billion.
Fixed immediate sales increased 26 percent year-to-date, reaching $3.4 billion in premium. Variable immediate annuities (VIA) premium dropped 32 percent for a nine-month total of $360 million, while structured settlements premium of $3.5 billion represented a drop of 26 percent.
Fixed deferred annuity sales, which comprise nearly 92 percent of fixed annuity sales, grew by 71 percent compared to the same period in 2001 to reach a record total of $75.6 billion. Breaking down fixed deferred annuities further, market value adjusted (MVA) sales increased 86 percent to reach $15.8 billion in sales, equity indexed annuities (EIA) increased 78 percent with $8.2 billion in sales, and book value deferred annuities increased 66 percent to complete the third quarter with $51.6 billion in year-to-date sales.
“The continuing string of increasing sales of fixed annuities is all the more remarkable considering the current interest rate environment, which reached an all-time low in September,” said Dan Beatrice, Retirement Research analyst, who conducts the quarterly sales survey.
| 3Q | 3Q 02/01 | YTD | YTD 02/01 | |
|---|---|---|---|---|
| Variable | 30.8 | 17% | 88.3 | 6% |
| Fixed | 30.0 | 56% | 82.5 | 60% |
*Preliminary estimates: LIMRA International U.S. Individual Annuities Sales Survey
