Fixed and variable annuity sales increase 6% in new second quarter data
Fixed and variable annuity sales were $ 60 billion in the second quarter of 2021, up 6% from sales of $ 56.7 billion in the first quarter of 2021, according to the Insured Retirement Institute (IRI) , which today announced final market data for the second quarter of 2021 for the United States. annuity industry based on data reported by Beacon Annuity Solutions and Morningstar, Inc.
Total fixed annuity sales rose 12.1% to $ 30.8 billion, driven by strong gains in traditional fixed and fixed indexed annuities, from $ 27.5 billion in the first quarter of 2021. Sales of variable annuities were almost flat, increasing 0.2% to $ 29.23 billion from $ 29.17. billion in the first quarter.
Sales of fixed book-value annuities were responsible for the lion’s share of gains in the fixed category, rising 32% to $ 7 billion, while sales of market-adjusted annuities fell 9.7% to $ 6.7 billion. Sales of fixed indexed annuities were significantly higher, increasing 15.8% to $ 15.4 billion, and sales of income annuities were up 17% from first quarter levels, reaching 1.00%. $ 8 billion for the second quarter.
Sales of variable annuities other than registered indexed annuities (RILA, which are structured variable products that use index options to provide both upside potential and downside protection) fell 4.8% to $ 19 billion compared to first quarter sales of $ 20 billion, while RILA increased 11.2% to $ 10.2 billion from $ 9.2 billion in the first quarter of 2021.
In the fixed market, $ 15.6 billion in sales were for qualifying plans and $ 15.2 billion was ineligible. Variable annuities posted $ 17.9 billion in qualifying sales and $ 11.3 billion in non-qualifying sales.
According to Morningstar, variable annuity net assets fell 1.2% to end the second quarter at $ 2,079.8 billion from $ 2,104.1 billion in the first quarter. Equity funds, the second largest asset class, rose 2.4% from the first quarter, but 24.5% more than in the second quarter of 2020, reflecting the strong recovery in the equity market. actions after COVID-induced drop last year.
Net asset flows in variable annuities were – $ 18.5 billion in the second quarter, an improvement over the previous two quarters when net asset flows were – $ 24 billion to – $ 25 billion .