“As an emerging market, DIAs have experienced significant growth in 2012,” said Joe Montminy, assistant vice president and director of LIMRA annuity research, in a press release.
He said that as consumers in the 45 to 59 age bracket continue to look for sources of income, these products will continue to have “remarkable growth.”
Total annuity sales were $52.6 billion in the fourth quarter, a decline of 8% from the previous year. Variable annuity also decreased 8% to reach $35.0 billion.
“Unlike historical trends, VA sales did not follow equity market growth, which increased 13% in 2012,” noted Montminy. “VA sales performance in 2012 was clearly influenced by companies’ strategic management of their books of business—removing some products from the market, limiting additional contributions into existing contracts, and revising features/pricing on GLB riders.”
Total fixed annuity sales were $17.6 billion in the fourth quarter, falling 7% from the fourth quarter of 2011.