Individual annuity sales hit a U.S. record in the second quarter of 2007 at $66.5 billion, a 6 percent increase over the same period in 2006, according to LIMRA International. Sales for the first half of 2007 were up 3 percent over the first half of 2006, reaching $124.5 billion.
Variable annuity sales saw continued growth, rising 13 percent in the second quarter to a record $48.5 billion. Variable annuity sales were up 10 percent year-to-date at $90.6 billion. Fixed annuity sales continued a declining trend, dropping 10 percent for the quarter to $18 billion. At $33.9 billion, total fixed annuity sales were down 12 percent in the first half of 2007. Index annuities fell 2 percent to $6.4 billion in the second quarter of 2007 compared to the second quarter of 2006. Contributing to the quarterly drop in fixed annuity sales were book-value deferred annuity sales, which fell 24 percent to $6.7 billion; market value adjusted annuities slipped 6 percent to $1.6 billion. Sales of fixed income annuities increased in the second quarter of 2007. Fixed immediate annuities were up 13 percent to $1.7 billion, and structured settlements grew 7 percent to $1.6 billion.
Among distribution channels, financial planners and independent broker-dealers led variable annuity sales with $13.1 billion, up 15 percent for the quarter. Career agents had the second-highest variable annuity sales with $10.7 billion, followed by stockbrokers with $9.1 billion, each increasing by 11 percent. Independent agents were the largest sellers of fixed annuities with $8.1 billion, down 7 percent from the second quarter of 2006. Banks had the second highest fixed annuity sales with $4 billion, down 20 percent for the quarter. Career agents' fixed annuity sales volume was next with $2.3 billion, down 21 percent.
