Feb. 24 (Bloomberg) — Sales of annuities jumped 17 percent in the fourth quarter, the biggest gain in 11 years, as higher bond yields buoyed insurers that offer the savings products.
Insurers sold $61.9 billion of annuities, compared with $52.7 billion a year earlier, according to estimates today from industry group Limra. The increase was fueled by sales of fixed annuities, which jumped 45 percent to $25.6 billion.
Annuities can guarantee returns for retirees, with the payouts typically tied to interest rates. The 10-year Treasury yielded an average 2.73 percent in the fourth quarter of last year, up from 1.69 percent in the same period in 2012.
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