Press Room
Press Release

FOR IMMEDIATE RELEASE | September 6, 2001
CONTACT: Deborah Tucker, (703) 707-8830 ext. 15

NAVA Reports Second Quarter Variable Annuity Industry Data

Reston, VA, September 6, 2002 - NAVA announced today second quarter results for the variable annuity industry. The combined net assets of U.S. variable annuities decreased 7.0 percent to $829.5 billion at the end of the second quarter, as compared to the end of the first quarter of 2002. Net assets decreased by 8.9 percent relative to the second quarter a year ago.

Table 1. Variable Annuity Net Assets

(Dollars in Millions)	6/30/02	3/31/02	12/31/01	6/30/01
Total Net Assets	829,491	892,087	885,675	910,361

Total variable annuity premium flow, or total sales, for the second quarter was $28.8 billion, a 1.8 percent decrease from second quarter 2001. Second quarter net flows of $6.7 billion shows a decrease of 18.8 percent from the second quarter 2001 net flows of $8.3 billion. The mix in premiums for the second quarter showed 60 percent of the total premium flow was in qualified plans and 40 percent in non-qualified.

Net Flows for the first six months of 2002 were $14.8 billion, or 26.8 percent of total flows, as compared with $14.0 billion, or 24.2 percent of total flows in the first six months of last year. This reflects a 2.6 percent increase in net flows as a percent of total flow even though total flow of $55.2 billion in the first half of the year is 4.4 percent lower than six-month total sales volume of $57.8 billion a year ago.

Table 2. Variable Annuity Premium Flows¹

	Quarter Ended		Six Months Ended
(Dollars in Millions)	6/30/02	6/30/01	6/30/02	6/30/01
Total Premium Flows	28,848	29,383	55,241	57,787
Net Flows	6,743	8,300	14,796	14,000

¹ Total Premium Flows represent the sum of new sales [all first-time buyers of a contract, including inter- and intra-company exchanges] and additional premiums from existing contract owners. Net Flows represent Total Premium Flows minus surrenders, withdrawals, inter- and intra-company exchanges, and benefit payments.

Table 3. Quarterly Variable Annuity Total Premium & Net Flows¹

						Quarter Ended
($Millions)	6/30/02		3/31/02		12/31/01		9/30/01		6/30/01		3/31/01
Total Flows	$28,848		$26,172		$27,806		$27,185		$29,407		$28,417
Net Flows	6,743	23.3%	8,053	30.8%	8,600	30.9%	7,300	26.8%	8,300	28.2%	5,700	20.1%

The mix of net assets by investment objective showed that $452.1 billion, or 54.5 percent of assets, was held in equity accounts. This is a decrease of 12.7 percent as compared with year-end 2001 when $518.1 billion, or 58.5 percent, was held in equity accounts. The mix also shows that $209.0 billion, or 25.2 percent of assets, was held in fixed accounts, which is an increase of 5.8 percent as compared to the end of 2001.

Table 4. Variable Annuity Assets by Investment Objective

(As a percent of total assets)	6/30/02	12/31/01
Equity	54.5%	58.5%
Fixed Accounts	25.2	22.3
Balanced	7.7	7.8
Bonds	8.0	7.0
Money Market	4.6	4.5

NAVA is a non-profit trade association located in suburban Washington D.C. NAVA provides a variety of services to the industry including educational forums, research, and conferences aimed at furthering the development of fixed and variable annuities, income annuities and variable life insurance. NAVA also maintains and supports an educational website for consumers at www.RetireOnYourTerms.com.