Year-to-date, total annuity sales declined eight percent compared to the first half of 2011, reaching $57.0 billion, according to LIMRA.  The one bright spot for the quarter was indexed annuity sales, which are on pace to have a record year, LIMRA said.

Indexed annuity sales are benefiting from the guaranteed life withdrawal benefit riders that close to 90 percent of the investment vehicles offer.

Indexed annuity sales rose six percent in the second quarter compared to the same quarter last year, to reach $8.6 billion. In the first half of 2012, indexed annuities jumped 10 percent compared to the first six months of 2011. For the fourth consecutive quarter, indexed annuities outperformed traditional fixed annuities, capturing 47 percent of the fixed annuity market, LIMRA said.

While variable annuity sales dropped five percent in the second quarter 2012 compared to the second quarter of 2011, variable annuity sales did perform five percent better than in the first quarter of 2012. Variable annuity sales recorded $75.4 billion for the first six months of 2012, according to LIMRA.

Year to date, fixed annuity sales were down 12 percent to $36.4 billion, LIMRA said.

The annuity statistics are provided in LIMRA’s second quarter 2012 U.S. Individual Annuities Sales survey, which represents data from 95 percent of the market.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.