Variable Annuity Assets Drop

Assets held in variable annuities fell 6%, to $1.4 trillion, during the first quarter from the end of 2007 and rose 0.5% compared with last year's first quarter, according to Nava. Variable annuity total sales, also known as premium flows, rose 1.7%, to $41.6 billion, in the quarter compared with the year-earlier period, according to the company's quarter data. Net sales, also known as net flows, rose 12.3%, to $7.2 billion. Assets held in equity accounts made up 56.1% of the total, down 6.1% from a year earlier, 18.8% of assets, or $262.9 billion, were in fixed accounts. Nava, which is a nonprofit association in Reston, Va., released the quarterly data Monday. Originally published in American Banker.