The sales of segregated funds in terms of premium declined by 7 per cent in 2016, compared to 2015. During this period, the sales of fixed annuities and of combination annuity products increased by 11 per cent.
The most recent report by LIMRA on individual annuity sales in Canada says sales jumped in the fourth quarter, increasing by 23 per cent compared to the fourth quarter of 2015. Sales of segregated funds decreased by 4 per cent during the same period, and combination annuity sales rose 12 per cent. Combination annuities are a hybrid product bringing together segregated funds and fixed annuities under one contract.
Accumulation products, however, dominated when it comes to sales. In 2016, they reached $10.2 billion for segregated funds, $3 billion for combination products and $2.3 billion in fixed annuities.
Historically, the first and last quarters of a year are the ones in which sales are the highest. In the fourth quarter, sales reached $2.9 billion for seg funds, $771 million for combination products and $694 million for fixed annuities.
Remaining stable, total assets under management for all individual annuity products reached $136.9 billion at the end of the fourth quarter of 2016.
Total premium for all individual annuities hit $15.5 billion in 2016, compared to $15.9 billion one year earlier. This is a decline of 2.6 per cent.