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Filed Under:Annuities, Variable

Strategic Insight: Variable Annuity Assets Decline in Third Quarter

New York Stock Exchange. AP Photo: L.M. Otero
New York Stock Exchange. AP Photo: L.M. Otero

Variable annuities assets dipped nearly 5% in value in the third quarter of 2011 compared to the same period one year ago, a new report reveals.

Strategic Insight, Arlington, Va., published this finding in its most recent quarterly review of variable annuity performance.

The survey reveals that variable annuity funds (excluding fixed accounts) totaled $1,235 billion at the end of September, down from $1,297 billion at the close of the third quarter of 2010.

In relation to the second quarter, the third quarter dip was even greater: down 12.7% when assets were $1,415 billion.

The survey notes also that equities experienced a net outflow of funds totaling $19.3 billion at the end of September. This compares with a net outflow totaling $1.7 billion in the third quarter of 2010.

Equity funds totaled $879.9 billion of $1.2 trillion in variable assets (including bonds and money market funds) in the third quarter of 2011, or 71.3% of the total. This contrasts with $963.3 billion of $1.3 trillion in assets, or 74.3% of the total, for the year-ago period.

Bond funds rose to 24.6% ($303.5 billion) of assets in the third quarter from 21.8% ($282.6 billion) in the third quarter of 2010. Money market assets rose marginally 4.2% ($51.5 billion) in September from 3.9% ($51 billion) for the year-ago period.

New York Stock Exchange. AP Photo: L.M. Otero

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