Individual annuity sales are on pace to set a growth record this year, according to data from Limra International.
Sales have grown 6% through the first three quarters of the year to reach $189.4 billion, according to the report released Monday by Limra, a Windsor, Conn., research firm.
"Current equity market volatility on the variable annuity side and a widening gap between short-term and long-term interest rates on the fixed annuity side make a favorable environment for selling annuities," said Dan Beatrice, an analyst on Limra's annuity research team.
Variable annuity sales are "near certain" to come in at a record level for this year, he said, though fixed annuity sales probably will decline for the year.
"We anticipate strong fourth-quarter sales growth" overall, he said.
Variable annuity sales grew 23% in the third quarter, to $46.4 billion, from a year earlier, according to Limra's data.
This was the ninth consecutive quarter in which variable annuity sales increased when compared to the same period a year earlier. Variable annuity sales were up 14% through Sept. 30, to $136.0 billion.
Fixed annuity sales fell 10% in the third quarter, to $19.3 billion. The product category includes fixed deferred annuities, as well as immediate annuities and structured settlements. Through Sept. 30 total fixed annuity sales had fallen 11%, to $53.4 billion.
Sales of immediate annuities continued to grow in the third quarter, up 6% to $1.7 billion; the product's sales were up 9%, to $4.9 billion, through the first nine months of the year.
Variable immediate annuity sales were down 6% in the first three quarters, Limra said.
Deferred annuity assets increased 1.9%, to $2.04 trillion, in the third quarter.
Inflows exceeded outflows in the third quarter, yet overall asset growth continues to result mostly from investment earnings.
Providers continue to enhance their variable annuity offerings in an effort to take advantage of these sales trends.
Jackson National Life Insurance Co., a Lansing, Mich., subsidiary of London's Prudential PLC that had $79.8 billion of total assets and $72.2 billion of policy liabilities at June 30, announced the introduction Monday of several enhancements to the features and benefits offered within its Perspective family of variable annuities.
In addition to strengthening and broadening its roster of optional living benefits, Jackson National added five underlying investment strategies subadvised by Standard & Poor's Investment Advisory Services LLC.
It also introduced a guaranteed minimum withdrawal benefit Monday and a guaranteed minimum income benefit.
The company now has eight optional guaranteed minimum withdrawal benefits available for an additional charge within its roster of unbundled variable annuity products.
