Annuity Sales Decline in Quarter 3 of 2012 Due to Low Interest Rates
Sales of annuities tumbled in the 3rd quarter of 2012 compared to that of 2011 according to LIMRA. Annuity sales dropped to $54.3 billion from $60.1 billion which is a 10 percent drop. The historically low interest rates are a primary cause for these declined sales. Almost all product types had decreased sales. Only fixed indexed annuities (FIAs) increased as they continue to move towards a record year. FIA sales actually increased by 6% to reach a quarterly total of $25.4 billion. LIMRA noted that this jump is primarily resulting from the very popular guaranteed lifetime withdrawal benefit (GLWB) offered within these products.
Annuity Help | Find a Retirement Income Specialist