U.S. Annuity Sales Reach Record $119B in Q3 2025 Amid Growth in Registered Products

In the third quarter of 2025, total annuity sales in the U.S. increased by 4% to reach $119.3 billion, marking the eighth consecutive quarter with sales exceeding $100 billion.

Year-to-date sales totaled $345 billion, also up 4% year-over-year, representing the highest nine-month sales ever recorded. Registered annuity products, including traditional variable annuities and registered index-linked annuities (RILAs), posted strong double-digit growth despite market volatility, driven by investor demand for inflation hedging and equity market exposure.

RILA sales climbed 20% year-over-year to $20.6 billion for the quarter and 18% year-to-date to $57.3 billion, driven by favorable market conditions and product innovation with new entrants and enhancements in offerings. These products offer protected growth aligned with equity market returns, attracting risk-conscious investors during periods of moderated volatility and equity gains.

Traditional variable annuity sales rebounded with an 11% increase in the quarter to $16.7 billion, while fixed-rate deferred annuity sales rose 3% to $41.7 billion. Despite expectations of pressure from lower interest rates on fixed annuity sales, these products remain attractive for short-term investment with crediting rates higher than certificates of deposit, providing a relatively secure growth option for conservative investors.

Conversely, fixed indexed annuity sales declined by 6% in the quarter to $33.2 billion, with a slight year-to-date drop of 1%. Single premium immediate annuity sales increased 6% in the quarter but remain below 2024 levels, while deferred income annuity sales fell 5% for the quarter and 11% year-to-date, though still triple the sales compared to five years ago.

Consumer concerns about outliving retirement savings continue to drive demand for annuities, particularly among Generation X, who lack traditional pension plans. LIMRA anticipates steady demand as awareness of guaranteed income benefits grows despite economic fluctuations. Full rankings of annuity carriers for 2025 will be published following quarterly earnings disclosures.