The first quarter of 2011 showed positive growth for variable, fixed and total annuity sales,according to the LIMRA 2011 Annuity Sales Survey.

Total annuity sales reached $60 billion in the first threemonths of 2011, a 16 percent growth compared to the first quarterof 2010. Variable annuity sales improved even more; there was a 24percent jump for the product when compared to the same period lastyear.

"Strong VA sales, which recorded $39.8 billion in the firstquarter, were the main driver of the overall annuity growth,"Joseph Montminy, LIMRA assistant vice president, annuity research,said in a press release. "They benefited from the positive equitymarket trend and consumers putting money back into the market. Inaddition to the top three VA companies experiencing record salesfor the second consecutive quarter, 16 of the top 20 VA companiesimproved sales from one year ago, which sets a good pace for2011."

Fixed annuities grew 5 percent versus first quarter 2010,totaling $20.2 billion. This growth was a result of fixed-ratedeferred products, which were up 10 percent compared to lastyear.

Book-value sales grew 10 percent year-over-year and 32 percentcompared to the previous quarter. Interest rate spreads improved,as well, making fixed annuities more attractive compared tocomparable investment products, such as CDs.

Market-value adjusted sales also increased, up eight percent inthe first quarter of 2011.

Indexed annuities remained steady in the first quarter of 2011,increasing 1 percent from 2010. After reaching record levels in the$8 to $9 billion range for most of 2010, indexed annuities settledback to the $7 billion level this quarter.

PrudentialAnnuities was the top writer for both total and variableannuity sales in the first quarter of this year, while AIG Annuities toppedthe list for fixed sales. A list of the top 20 writers in fixed, variable, and totalannuities is available from LIMRA.