Windsor, CT, August 26, 2013… Indexed annuity sales through banks and credit unions reached a record high of $1.06 billion in the second quarter of 2013, one third higher than the first quarter and two thirds higher than the same quarter last year. For the first time, indexed annuities accounted for one-third of bank sold fixed annuities.
According to LIMRA, indexed annuity sales in the overall industry grew 15 percent to a record high of $9 billion in last quarter. Since the bank channel experienced a higher growth rate in the second quarter bank share of industry sales reached 12 percent, setting another record. In 2008, banks accounted for only 4 percent of indexed sales.
According to Janet Cappelletti, Head of Research at BISRA, “Indexed annuities heated up in 2009 reaching almost $900 million in the third quarter. Indexed sales then cooled for a few years, but we are now seeing sales that surpass the 2009 record. With the Dow over 15,000 consumers are hoping for some upside but trading ultimate gains for downside protection.”
“Annuity sales at banks were up across the board in the second quarter,” she continued, “and while fixed annuities have been see-sawing, we’ve been seeing strong and consistent growth with indexed products for the last six quarters.”