Let’s be happy for this recently reported good news: variable annuity sales are rebounding!

At the same time, I think it’s important to remember the difficulty variable annuities have had and what that means. Sales have decreased by 30 percent since the peak level in 2007. That means it is going to take a 43 percent increase in sales just to get that back.

Obviously, it’s great news that LIMRA reported an 80% increase for the first half of this year over the first half of 2009. However, the reality is that if that is the growth rate we can expect, it will take four more years for variable annuities to regain their previous peak level.

LIMRA’s report also shows that Prudential replaced MetLife at the top of variable annuity sales with a remarkable 86% increase in sales for the first half of this year, compared to the same period last year. MetLife held steady with a 3% increase in its variable annuity sales.

Prudential’s sales increase seems to reflect its increase in direct marketing campaigns. Mintel Comperemedia’s data show that the number of campaigns sent to producers for the first half of 2010 is double what Prudential sent out for the same period of 2009, and they are reaching twice as many producers. Likewise, MetLife sent out the same number of producer campaigns for its variable annuity product.

For details of Prudential’s or MetLife’s campaigns, please leave me a comment below or email info@comperemedia.com.

The variable annuity industry’s growth this quarter ended a long string of declines. Part of this growth was achieved by increased producer direct marketing campaigns. Let’s hope variable annuity marketing campaigns increase even further to prompt even faster growth over the next few years.

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