Fixed-rate deferred annuity sales jumped 60% in the third quarter to $15.8 billion, driven by a rebound in sales through banks, many branches of which were closed during the early stages of the pandemic, according to the Secure Retirement Institute.
Year-to-date, however, sales of fixed-rate deferred annuities are up just 1% from year-ago levels, the group reported in its annual annuity sales survey.
Total annuity sales were $55.3 billion in the third quarter, up 14% from the second quarter but 7% lower than during the third quarter last year. Year-to-date, annuity sales totaled $159.7 billion, falling 13% from the prior year.
Fixed indexed annuity sales for the third quarter were $13.2 billion, up 10% from the second quarter, yet 29% below prior year levels, SRI said. All channels except the independent agent channel, which saw FIA sales drop 2%, experienced double-digit growth, compared with second quarter results.
In the first three quarters of 2020, FIA sales totaled $41.4 billion, 27% lower than in the first three quarters of 2019.
Total variable annuity sales at $23.5 billion were 13% higher than in the second quarter, but down 11% compared with third quarter 2019.
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