US annuity sales reach record high in the first half of 2024

investmentnews.com:

US annuity sales surged to $215.2 billion in the first half of 2024, marking a 19% increase over the previous year, according to preliminary data from LIMRA’s US Individual Annuity Sales Survey. This sets a new record for the first six months of a year since LIMRA began tracking sales in the 1980s.

In the second quarter alone, annuity sales reached $108.5 billion, reflecting a 25% year-over-year increase. This quarter marked the second-highest total ever recorded, narrowly missing the record set in the fourth quarter of 2023. All product lines, except fixed immediate annuities, posted double-digit gains.

“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 Bryan Hodgens, senior vice president and head of LIMRA research. “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.”

Fixed indexed annuity (FIA) sales hit a new quarterly record, totaling $29.7 billion, a 17% increase from the previous year. Year-to-date (YTD), FIA sales reached $58.3 billion, up 20% year over year.

Registered index-linked annuities (RILAs) achieved record sales for the fifth consecutive quarter, with second-quarter sales reaching $16.2 billion, a 42% year-over-year increase. In the first half of 2024, RILA sales jumped 41% to $30.7 billion.

“For the third consecutive quarter, RILA sales have outpaced traditional variable annuity sales. More than a half dozen