U.S. Individual Annuity Sales on Pace for Record Growth

Windsor, Conn., Dec. 3, 2007 — Total individual annuity sales are on a record setting pace, growing six percent through the first three quarters of 2007 to reach $189.4 billion, according to LIMRA International.

"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, analyst for LIMRA's annuity research. "Variable annuity sales are near certain to come in at record levels for 2007, and while fixed annuity sales will likely be down for the year, we anticipate strong fourth quarter sales growth."

Variable annuity sales jumped 23 percent in the third quarter, reaching $46.4 billion. This is the ninth consecutive quarter in which variable annuity sales increased when compared to the same quarter from a year ago. Variable annuity sales were up 14 percent year-to-date to $136.0 billion.

Total fixed annuity sales fell 10 percent for the quarter to $19.3 billion. Fixed annuities include fixed deferred annuities (indexed, book value, and market-value adjusted annuities), as well as immediate annuities and structured settlements. Year-to-date, total fixed annuity sales decreased 11 percent to $53.4 billion.

Sales of fixed immediate annuities continued to grow in the third quarter, up six percent to $1.7 billion for the quarter and up nine percent ($4.9 billion) year-to-date. Variable immediate annuities were down six percent year-to-date.

Total deferred annuity assets grew 1.9 percent to $2.04 trillion in the third quarter of 2007. Inflows exceeded outflows in the third quarter, yet overall asset growth continues to result mostly from investment earnings.

This report also includes a table of the top 20 writers of overall total annuities, variable annuities and fixed annuities ranked by 2007 year-to-date sales results, as well as the third quarter Annuities Industry Estimates Chart.

About LIMRA International

LIMRA International is a worldwide research, consulting and professional development organization that helps more than 850 insurance and financial services companies in 73 countries increase their marketing and distribution effectiveness. Visit LIMRA International at www.limra.com.