FOR IMMEDIATE RELEASE | February 26, 2002
CONTACT: Deborah Tucker, (703) 707-8830 ext. 15
NAVA Reports Fourth Quarter Variable Annuity Industry Data
Reston, VA, February 26, 2002 - NAVA announced today that the combined net assets of U.S. variable annuities increased 8.5 percent to $883 billion at the end of the fourth quarter relative to the end of the third quarter of 2001. Net assets decreased by 7.7 percent as compared to the end of 2000.
Table 1. Variable Annuity Net Assets
| (Dollars in Millions) |
12/31/01 |
9/30/01 |
12/31/00 |
| Total Net Assets |
882,912 |
813,527 |
956,491 |
The mix by investment objective showed that $517.4 billion, or 58.6 percent of assets, was held in equity accounts. This is a decrease of 16.8 percent as compared with year-end 2000 when $621.7 billion, or 65.0 percent, was held in equity accounts.
Table 2. Variable Annuity Assets by Investment Objective
| (As a percent of total assets) |
12/31/01 |
12/31/00 |
| Equity |
58.6% |
65.0% |
| Fixed Accounts |
22.2% |
18.8% |
| Balanced |
8.4% |
8.4% |
| Bonds |
6.4% |
4.6% |
| Money Market |
4.4% |
3.2% |
Total variable annuity premium flow, or total sales, for fourth quarter was $27.8 billion, a 9.2 percent decrease from fourth quarter 2000. For consecutive quarterly trends, the fourth quarter experienced a 2.3 percent increase in sales as compared with $27.2 billion reported for the third quarter 2001. The mix in premiums for the fourth quarter showed 55 percent of the flow was in qualified plans and 45 percent in non-qualified. Year-end total premium flow of $112.8 billion is 17.8 percent below last year’s year-end total sales volume of $137.2 billion.
Table 3. Variable Annuity Premium Flows1
| |
Quarter Ended |
Year-Ended |
| (Dollars in Millions) |
12/31/01 |
12/31/00 |
12/31/01 |
12/31/00 |
| Total Premium Flows |
27,797 |
30,617 |
112,824 |
137,180 |
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.
1 Total Premium Flow represents the sum of new sales [all first-time buyers of a contract, including inter- and intra-company exchanges] and recurring premiums from existing contract owners.
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Phone: 703-707-8830 · Fax: 703-707-8831
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