Turmoil from the financial crisis drives record sales in fixed annuities.
Uncertainty in equity markets has fueled part of the growth. The guarantee in indexed annuities is the defining difference from variable annuities, enticing customers seeking protection against further losses. Sales of indexed annuities often go up when sales of variable annuities go down or when certificate of deposit rates — a competitor for annuities — are unfavorable, Moore said. Total 2008 indexed annuity sales were $26.7 billion, the second-highest sales year for the product line, behind 2005.
Source: Des Moined Register
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