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Annuities Today

Annuity sales reached $240.3 billion in 2011, an 8 percent increase compared to 2010, according to a report by LIMRA, which represents data from 94 percent of the market (See Table 1.1). Total VA sales sustained 13 percent growth in 2011, growing to $159.3 billion which exceeded total VA sales from 2008. Total fixed annuity sales slipped 1 percent to reach $81.0 billion (includes structured settlements of $5.1 billion).

However, with many of the 77 million baby-boomers facing retirement income shortfalls, annuities will be well positioned because it is the only long-term tax-deferred savings vehicle that can be used to both accumulate and distribute assets to guarantee a lifetime of income one cannot outlive.

Table 1.1

Total U. S. Individual Annuity Sales and Assets
2000 – 2011 ($ billions)

YEAR SALES ASSETS
2001 187.6 1,236.8
2002 218.3 1,216.6
2003 215.8 1,483.9
2004 217.6 1,634.2
2005 212.6 1,721.3
2006 232.9 1,893.7
2007 255.0 1,996.2
2008 265.0 1,682.8
2009 238.6 1,973.7
2010 210.0 2,035.2
2011 240.3 2,444.1e

Source: Morningstar Inc. and LIMRA International, Windsor, Conn
(Estimate from a survey of 60 insurers that account for 95 percent of
total U.S. annuity sales, February 2012; IRI 2011).


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