The second quarter marked the greatest increase in combined net assets in variable annuities in the U.S. in more than four years.
The Insured Retirement Institute said net assets in variable annuities rose more than 11% over the previous quarter, eclipsing the $1.19 trillion mark.
The 11% increase was the largest reported in 17 quarters, according to the institute.
Cathy Weatherford
“As the economy begins to show signs of stability, consumers continue to be thoughtful about their investments as they come back to the market,” said Cathy Weatherford, president and CEO of the institute in a statement “The growth in the annuity industry underscores this emerging trend, demonstrating the security and peace of mind insured retirement strategies provide to consumers.”
Weatherford predicted that interest in variable annuities won’t flag soon.
“With the personal savings rate remaining high, we’re likely to see this renewed investment in annuities continue in the months to come,” she said.
Variable annuity sales for the second quarter were $31.8 billion, up from $30.4 billion in the previous quarter. Second quarter 2009 net sales were $6.1 billion, compared to first quarter net sales of $5.1 billion. There were $23.4 billion in qualified sales and $8 billion in non-qualified in the second quarter, according to the institute.
Variable annuities set record with net asset increase via IFAwebnews.com .
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