Insurance companies and broker-dealers sold $7.4 billion million in annuity products in April, down from $7.7 billion in March, the Depository Trust & Clearing Corporation announced.
Outflows, however, decreased by more than 3% in April, to under $6.2 billion, compared with more than $1.3 billion in March. Net flows, the difference between funds added and withdrawn, decreased by almost 8% in April, to $1.2 billion, from $1.3 billion in March.
Although the month-to-month numbers for April were mixed, the trend from 2011 to 2012 was different. Over the past 13 months, monthly annuity inflows and net flows has fallen. Inflows for April 2012 was about $7.3 billion, down from inflows that were about $7.8 billion in 2011. Net flows in April 2012 were just over $1 billion, down from about $1.9 billion in April 2011.
Non-qualified accounts also saw net flows of annuity assets. Although these types of accounts attracted more than 40% of inflows in April, net cash flows into non-qualified accounts were negative for the fourth month in a row.
Qualified accounts, such as 401(k) s and IRAs, were slightly under 60%, and the other 40% went into non-qualified accounts. Although non-qualified accounts drew in more than 40$ of inflows in April, net cash flows into non-qualified accounts were negative for the fourth month in a row.