US variable annuity (VA) sales enjoyed a strong second quarter,
according to data provided by industry body the National
Association of Variable Annuities (NAVA). Registering the third
straight quarter of growth, the VA industry recorded total net
inflows of $8.7 billion in the three months to 30 June 2007, an
increase of 34.8 percent compared with the first quarter of 2007
and 6.2 percent up on the second quarter of 2006.
Perhaps more indicative of a rising trend in VA sales, the average
quarterly net inflow during the four quarters to 30 June 2007 stood
at $7.39 billion, a 15.3 percent increase compared with an average
net quarterly inflow of $6.41 billion during the previous four
quarters to 30 June 2006.
Net flows represent total premium flows minus surrenders,
withdrawals, inter- and intra-company exchanges and benefit
The VA industry’s total net assets also continued to improve during
the second quarter, rising to $1.5 trillion, a 4.6 percent increase
compared with the first quarter of 2007 and a 15.3 percent increase
compared with the second quarter of 2006.
NAVA noted that the mix of net assets by investment objective
showed that $885.8 billion, or 60.9 percent of total assets, was
held in equity accounts. This is an increase of 18.7 percent
compared with the second quarter of 2006 when $746.3 billion, or
59.2 percent of assets, were held in equity accounts.