Sales of annuities tumbled in the third quarter compared to a year ago, reports LIMRA. Nearly all product types saw declining sales, except for indexed annuities, which LIMRA predicts will have a record-setting year in 2012.
Overall, annuity sales fell 10 percent from the third quarter of 2011, dropping from $60.1 billion in Q3 2011 to $54.3 billion. Data from LIMRA represents 95 percent of the market with 57 companies reporting.
Yet there were some bright spots. Specifically, sales of indexed annuities, due to solid performance by new companies entering the marketplace, held steady at $8.7 billion in the third quarter, same as a year earlier. However, sales of indexed annuities increased 6 percent year-over-year for a tally of $25.4 billion, up from$23.9 billion.
That jump, LIMRA reported, is primarily due to the guaranteed lifetime withdrawal benefit (GLWB) offered in indexed annuities. LIMRA estimates that 88 percent of indexed annuities sold offer a GLWB, with 71 percent of consumes electing that benefit.
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