Two recent articles continue the often contentious debate on equity indexed annuity returns. 

The first article—titled Real-World Index Annuity Returns—appears in the March edition of the Journal of Financial Planning.  The three authors offer an exploration of equity indexed annuity returns based on actual contracts that were sold. 

Structured products are hot.  U.S. sales rose 46 percent in 2010 to $49.5 billion.

The appeal is understandable in the wake of the financial crisis.  As folks in the indexed annuity business know, a floor of principal protection or "guaranteed" income combined with some upside potential is an easier sell in the current environment.

U.S. variable annuity sales grew by 24 percent from the same period a year earlier. Variable annuity sales for the first quarter of 2011 totaled $38.9 billion.

LIMRA reports that 16 of the top 20 variable annuity providers experienced sales growth relative to the previous year.

Prudential led the industry with a 40 percent increase and $6.81 billion in variable annuity sales in the first quarter.  Sales at MetLife increased 41 percent to $5.68 billion.

An article on indexed annuities appeared in Bloomberg yesterday (click here to read).

The article is substantive and comes from a credible source.  It is provides a good explanation of why surrender fees need to be a front-and-center consideration for any consumer considering the purchase of an annuity.

Allianz Life Insurance Company of North America reported strong revenue growth for the third quarter of 2010.

Fixed indexed annuity sales increased 36 percent and totaled $1.9 billion.

Variable annuity sales quadrupled to $800 million.

Allianz attributes the revenue growth to more risk averse consumers in the wake of the financial crisis.

The Center for Retirement Research at Boston College recently published a research brief that analyzes the impact of annuitization on retirement security.

Glenn Daily is one of the top financial advisors in the country. 

Specializing in life insurance and annuities, Glenn is widely recognized for his deep technical expertise and high level of objectivity as his services are strictly on a fee-only basis.

The annuity buying decision is complex and can be affected by commission-based financial incentives. Glenn’s writing, interviews and services are a great way to cut through some of the clutter.