Assets of variable annuities (VA) with guaranteed living benefit (GLB) riders rose 78 percent to $521 billion in the fourth quarter of 2010, up from $292 billion in the fourth quarter of 2008, according to a study by Windsor-based LIMRA.

Fourth quarter VA sales with GLB elected generated $23.1 billion, 79 percent of new VA sales. For the year, VA sales with GLBs elected totaled $81.1 billion, 8 percent higher than during the 2009, according to LIMRA.

The election rate of GLB riders slipped to 87 percent in the fourth quarter. In 2010, the GLB election rate was strong at 88 percent. The guaranteed lifetime withdrawal benefit (GLWB) election rate remained constant at 65 percent throughout the second half of 2010.

"GLBs are increasingly integral to the VA industry. Assets for VA with GLB riders have grown from 25 percent to 33 percent of total VA assets in just two years," said Dan Beatrice, senior analyst of LIMRA Retirement Research. "The lion’s share of new VA sales has been for contracts with GLB riders. In addition, persistency for these contracts is better than those without the GLB riders, resulting in more than double the 36 percent growth rate of total VA assets."