Third way annuity market grows but future 'uncertain'

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Third way annuity sales have continued to grow in the first quarter of 2009, up 7.7% over twelve months.

Figures from Watson Wyatt suggest the products are rapidly growing in popularity, despite problems for some providers. Total variable annuity sales in the UK hit £370m in the first three months of the year, up 7.7% compared with the same period in 2008. In 2008, sales more than doubled to £1.153m, though Watson Wyatt says the future of the market is uncertain. Andy Sanders, senior consultant at the firm, says: "Sales of variable annuities grew dramatically in 2008 as financial advisers and consumers became more familiar with the products on offer. "The record first quarter 2009 sale...

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