Fixed annuity sales end 2006 on a low ebb

Throughout 2006 fixed annuities had a hard time competing with bank certificates of deposit and guaranteed variable annuities

US sales of fixed annuities fell to an estimated $16.5bn in the fourth quarter of 2006, 15.7% down on the previous quarter and 1.1% lower than the same period in 2005. On a calendar year basis, estimated sales of $70.9bn were 3.3% below 2005, according to a study of sales of 48 insurance companies by independent research organisation Beacon Research.