U.S. annuity sales hit a new record in the first half of 2024 — $215.2 billion, up 19% from prior year, according to preliminary numbers from LIMRA’s U.S. Individual Annuity Sales Survey.
Total annuity sales increased 25% year over year in the second quarter, to $108.5 billion, according to the report, which represents 92% of the total U.S. annuity market. It’s the second highest quarterly total, a little less than the quarterly sales record set in fourth quarter 2023. All product lines, with the exception of fixed immediate annuities, had double-digit increases.
“This time last year, LIMRA reported a record-shattering second quarter and first half of the year,” said Bryan Hodgens, senior vice president and head of LIMRA research. “Those results wane in comparison to this year’s results. 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 U.S. annuity market post pandemic, resulting in 15 consecutive quarters of strong sales growth.”
- Fixed indexed annuity sales were $29.7 billion, 17% more than the prior year. Year-to-date, FIA sales were $58.3 billion, up 20% year over year.
- Registered index-linked annuities had record quarterly sales in the second quarter: $16.2 billion, 42% over the prior year. In the first half of 2024, RILA sales jumped 41% to $30.7 billion.
- Fixed-rate deferred annuity sales were $40 billion in the second quarter, 32% higher than second quarter 2023 sales, but down 7% from first quarter 2024. YTD, FRD annuity sales were $83.1 billion, up 15% year over year.
- Traditional variable annuities rose 18% to $15.6 billion in the second quarter. YTD, sales were $29.3 billion, up 12% year over year.
- Single premium immediate annuity (SPIA) sales fell 9% year over year to $3.1 billion in the second quarter, despite the Treasury’s 10-year interest rate averaging above 4.4% in the second quarter. In the first six months of the year, SPIA sales dropped 2% to $6.7 billion.
- Deferred income annuities surged 62% to $1.7 billion in the second quarter. YTD, DIA sales soared 53% to $2.9 billion.
Preliminary second quarter 2024 annuity industry estimates are based on monthly reporting. A summary of the results is available in LIMRA’s Fact Tank.
