Sales of annuities tumbled in the third quarter compared to a year ago, reports LIMRA. Nearly all product types saw declining sales, except for indexed annuities, which LIMRA predicts will have a record-setting year in 2012.

Overall, annuity sales fell 10 percent from the third quarter of 2011, dropping from $60.1 billion in Q3 2011 to $54.3 billion. Data from LIMRA represents 95 percent of the market with 57 companies reporting. For the first nine months of 2012, annuity sales totaled $166.1 billion, an 8 percent drop from the same period a year ago when sales hit $181.5 billion.

In a release detailing the results of the Q3 report, Joe Montminy, assistant vice president and director of LIMRA annuity research, commented that persistent low interest rates have caused annuity manufacturers to reassess their exposure to various product lines. "The sustained uncertain economic environment has many companies implementing conservative risk management strategies in an effort to prudently manage their business," he stated.