US individual annuities see record-breaking first quarter, says Limra
The first three months of 2024 proved to be a blockbuster quarter for US individual annuities as total US sales in the sector hit $106.7 billion, according to Limra.
Limra’s US Individual Annuity Sales Survey, which covers an estimated 92 percent of the space, found dollar inflows into US annuities from January through March, marking the highest first-quarter sales since data tracking began in the 1980s.
The newly published figures, which affirm preliminary results Limra published previously, also represented a 13 percent increase from the same three-month period in 2023.
“Demand for investment protection and guaranteed retirement income remains strong. This is the 14th consecutive quarter of year-over-year growth in the US annuity market,” Bryan Hodgens, head of Limra research said in a statement announcing the findings.
Despite a decline from the fourth quarter of 2023, primarily due to a dip in the fixed-rate deferred annuity market, Limra anticipates robust performance in annuity sales throughout 2024.
Sales of fixed-rate deferred annuities rose 4 percent year-over-year to $43 billion in the first quarter, marking the ninth consecutive quarter of growth in this segment. Accounting for over 40 percent of the total annuity market in the first quarter, that segment maintained its role as a key driver of sales growth.
Fixed indexed annuities also saw a significant surge, with sales hitting $28.6 billion, up 24 percent from the previous year. This represents the 12th consecutive quarter of year-over-year growth for FIAs.
“Growth was widespread with 61 percent of FIA carriers and eight of the top ten carriers reporting sales growth,” Hodgens noted, attributing the upbeat performance to sustained strong interest rates that
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