NAVA Reports Fourth Quarter Variable Annuity Industry Data

Friday, Mar 20,2009, 1:52:41 PM Click:

Reston, VA, March 18, 2009 - NAVA, the Association for Insured Retirement Solutions, today announced fourth quarter results for the variable annuity industry. The combined net assets of U.S. variable annuities fell from 13% to $ 1.1 trillion, compared to the end of the third quarter of 2008. The net assets decreased by 24.1% over the fourth quarter a year ago.

Variable Annuity Total Sales, also known as premium flows, for the fourth quarter was $ 33.3 billion, a decrease of 30.3% in the fourth quarter of 2007. Fourth quarter net sales of $ 3.4 billion shows a decrease of 61.5% compared to fourth quarter 2007 net flows of $ 8.9 billion. The mix in premiums for the fourth quarter to 67.4% of total sales were qualified plans and 32.6% in non-qualified plans.

Total sales for 2008 was $ 154.8 billion, a decrease of 15.1% the previous year 12 - month sales of $ 182.2 billion. Net sales for 2008 were $ 23.1 billion or 14.9% of total sales. This reflects a decrease of 30.8% of net sales compared to last year.

The combination of net assets by asset class showed that $ 504 billion, or 45% of assets, was held in equity accounts at the end of last year. This is a decrease of 43% compared to 2007, when $ 889 billion, or 60% of assets, was held in equity accounts. The mix also shows that $ 292 billion, or 26% of assets, was held in fixed accounts, which represents an increase of 14% compared to 2007.

About Annuities - With the changing demographics of the population lives longer, the decline of traditional sources of retirement income (pensions and social security), and the responsibility for funding retirement, the transition to individual - an annuity is a critical component of a retirement plan. He is a retired long-term investment offering a combination of insurance benefits, income payments guaranteed for life and tax-deferred savings. Variable annuities allow individuals to invest in a variety of underlying funds and fixed capital, and provide returns based on the performance of these funds. Only pensions to protect against market volatility and guarantee retirement income that can not be lost.

About NAVA - NAVA, Inc., the Association for pension insurance solutions, is a non-profit trade association located in suburban Washington DC NAVA provides a variety of services to the industry including educational forums, research and conferences aimed at promoting the development and understanding of fixed and variable annuities, income annuities and variable life insurance. For more information about NAVA visit www.navanet.org

For more information, please contact:

Kathleen Driscoll McKee, NAVA, (703) 707-8830 ext. 17 or kmckee@navanet.org
Elizabeth Walker, IMRE, (856) 988-0170 or elizabethw@imre.com