Annuity sales were largely mixed between April and June, a new report reveals.
According to LIMRA, total annuity sales to insurance customers increased by 4 percent in the second quarter when contrasted with the first quarter, totaling $57 billion. However, when these purchases were compared with the same three-month period in 2011, annuity sales were 8 percent lower.
Joseph Montminy, assistant vice president for annuity research at LIMRA, said tough financial circumstances many people are experiencing may help explain reduced purchase activity.
"The current economic conditions remain challenging for most insurers, driving overall annuity sales down," said Montminy. "The one bright spot this quarter were indexed annuity sales, which are on pace to have a record year."
Indexed annuity purchases jumped 6 percent from April to June when compared with the same period in 2011 to total $8.6 billion. Furthermore, through the first six months of this year, sales surged 10 percent versus the first half of last year.
As most agents are aware, indexed annuities differ slightly from fixed annuities in that they yield a higher return based on a specific equity-based index.