US annuity sales set new record in H1 2024

Written by Adam Cadle

25/07/2024

Total US annuity sales were $215.2bn in H1 2024, a 19% jump from prior year results, and a new sales record for the first six months of a year, LIMRA has revealed.

LIMRA’s US Individual Annuity Sales Survey, which represents 92% of the total US annuity market, also revealed that in Q2 2024, total annuity sales increased 25% YOY to $108.5bn. This is the second highest quarterly total ever recorded, just shy of the quarterly sales record set in Q4 2023.

“Annuities have benefited from the favourable economic conditions and the Federal Reserve not cutting interest rates this year,” Bryan Hodgens, senior vice president and head of LIMRA research, stated.

“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.”

Fixed indexed annuity (FIA) sales YTD were $58.3bn, up 20% YOY, and registered index-linked annuities (RILAs) sales were $16.2bn in Q2 2024, 42% higher than the prior year. In H1 2024, RILA sales jumped 41% to $30.7bn.

Total fixed-rate deferred annuity (FRD) sales were $40bn in Q2 2024, 32% higher than Q2 2023 sales but down 7% from Q1 2024. Year-to-date, FRD annuity sales totalled $83.1bn, up 15% year over year.

Traditional variable annuity (VA) sales rose 18% in Q2 2024 to $15.6bn. YTD, traditional VA sales were $29.3bn, a 12% gain year over year.

Related Articles