The total US annuity sales saw an increase in the first six months of 2024, a study by LIMRA found.
According to LIMRA’s Individual Annuity Sales Survey, the total US annuity sales increased by 19%, reaching $215.2 billion within the first half of the year. In the report, LIMRA stated that in the second quarter, the total annuity sales were up by 25% year-over-year to $108.5 billion.
The report said that every product line saw double digit gains except for fixed immediate annuities. Senior vice president and head of LIMRA Research Bryan Hodgens pointed out the stark difference between the results this year from the previous one.
“This time last year, LIMRA reported a record-shattering second quarter and first half of the year. Those results wane in comparison to this year’s results,” said Hodgens.
“Annuities have benefited from the favorable economic conditions and the Federal Reserve not cutting interest rates this year. We also believe demographic trends and a growing awareness of unique value proposition annuities offer have shifted the US annuity market post pandemic, resulting in 15 consecutive quarters of strong sales growth.”
The report found that fixed indexed annuity (FIA) sales rose by 20% year-over-year, reaching $58.3 billion. The second quarter saw a total of $29.7 billion, which was already 17% higher than what was recorded at the same time last year.
Registered index-linked annuities also had a 41% increase in sales to $30.7 billion, with the category seeing a fifth consecutive quarterly sales record of $16.2 billion in Q2, which was 42% higher year-over-year.
“For the third consecutive quarter, RILA sales have outpaced traditional variable annuity sales. More than a half dozen carriers have launched or enhanced their RILA products in the first half of the year. These product innovations are driving a more competitive landscape and signalling the RILA market still has significant growth potential,” said Hodgens.
The report also found that by the mid-year mark, fixed-rate deferred annuity sales reached $83.1 billion, while traditional variable annuity sales were at $29.3 billion. Deferred income annuity sales increased to $2.9 billion while single premium income annuity sales was at $6.7 billion, which was a 2% year-over-year decrease.
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