Total third-quarter sales of indexed annuities reached $8.7 billion, a 16 percent increase from the year-ago period and an all-time high for the industry, according to AnnuitySpecs.com, a Pleasant Hill-based annuity research firm.

“Although insurance companies are challenged to offer annuities because of the prevailing low interest rate environment, this environment has also increased the attractiveness of these products beyond anything we’ve ever seen before,” said Sheryl Moore, AnnuitySpec’s president and CEO. “With CDs averaging 0.56 percent a year and fixed annuities hovering at 3.14 percent, I think we can count on another record quarter to close out the year.”

Allianz Life Insurance Company of North America maintained its position as the top-selling indexed annuity carrier in the market, with a 21 percent market share, and Aviva plc continued as the No. 2 seller. American Equity Investment Life Insurance Co., Lincoln National Corp. and ING North America Insurance Corp. ranked third, fourth and fifth, respectively, according to AnnuitySpecs.

Forty indexed annuity carriers participated in the 53rd quarterly survey, which represents 99 percent of indexed annuity production.

In the indexed life insurance market, total third-quarter sales were $165.5 million, an increase of nearly 27 percent from the same period in 2009 but a small decrease from the second quarter. Aviva, which had been the top-selling indexed life carrier for all but one quarter since 2001, was overtaken this past quarter by Pacific Life Insurance Co., with 16 percent of total sales. Aviva, Minnesota Life Insurance Co., AEGON Group and National Life Group rounded out the top five.