Annuity Sales Surge 29% in Q3 2024, Setting New Records

The U.S. annuity market has witnessed remarkable growth, with total sales increasing by 29% year-on-year to reach $114.6 billion in the third quarter of 2024. This marks the 16th consecutive quarter of growth, underscored by the popularity of fixed and indexed annuity products. LIMRA expects continued strong performance for these products, especially with economic conditions favoring guaranteed income solutions.

Within this growth, fixed-rate deferred annuity (FRD) sales rose 18% from the previous year, contributing to an impressive total of $330.2 billion for the first nine months of the year. Similarly, registered index-linked annuities (RILA) and fixed-indexed annuities (FIA) have also set new records, with increases of 37% and 54% respectively.

Despite some volatility and expectations of interest rate cuts, sales of income annuities such as single premium immediate annuities (SPIA) and deferred income annuities (DIA) showed significant increases. The changing dynamics in the market, spurred by consumer interest in financial solutions that offer both protection and growth opportunities, suggest a positive forecast for annuity sales continuing into the future.