Bank annuity sales fell for the fifth consecutive quarter between July and September, according to preliminary estimates released by Kehrer-LIMRA, a leading provider of information about bank brokerage annuity sales.

Annuity premiums sold through banks was $10.2 billion in the third quarter, down 13% from the previous quarter and 26% from the third quarter of last year.

Fixed annuity sales, which have accounted for the lion’s share of bank annuity premiums since the first quarter of 2008, declined 18%, to $6.9 billion. Banks had sold $10.7 billion in fixed annuities in the first quarter this year, the most recent, high-water mark since 2003. “Fixed annuity sales, which were trending upward through most of the recession, are now trending downward since the spread between fixed annuities and CDs has been narrowing,” says Scott Stathis, managing director of Kehrer-LIMRA.

Sales of variable annuities were flat for the quarter, but remained down 26% year over year. VA sales had risen in the second quarter, after falling in each of the seven previous quarters. Stathis attributes the slight rise in VA sales to the stock market rally. “But insurers are trying to de-risk by offering products with higher fees and watered down-benefits, which makes it tough for people trying to sell variable annuities,” he says.