According to a new report from the Insured Retirement Institute (IRI), there was a 10.3 percent increase in new variable annuity sales in 2010.
New sales in the year totaled $136.6 billion, compared to $123.9 billion in 2009. With total assets at an all-time high of $1.5 trillion, IRI reports that the variable annuity industry has surpassed the pre-crisis level of the third quarter of 2007.
Variable annuity contract costs have remained steady over the past five years when measured as industry averages. Total average expenses in 2006 were 2.51, compared to the 2010 fourth quarter average of 2.49. Carriers moderated their product innovation efforts, with new benefit designs sticking to tried and true step up methods, and withdrawal percentages staying in the 5 percent range.
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