According to LIMRA’s Fourth Quarter 2014 U.S. Annuity Sales Survey, the news looks good for the industry. Total U.S. annuity sales in 2014 rose 3 percent to $235.8 billion, with indexed and income annuities leading the way.
“Despite interest rates falling nearly a percentage point in 2014, indexed annuities and income annuity sales – fixed immediate and deferred income – topped record sales levels,” said Todd Giesing, senior business analyst, LIMRA Secure Retirement Institute. “The performance of these products certainly propelled overall annuity sales to increase in 2014.”
Some highlights from the report:
* Total annuity sales in the fourth quarter were $58.1 billion, a 6 percent dip compared with the fourth quarter of 2013.
* Indexed annuity sales hit $48.2 billion in 2014 – $9.0 billion higher than prior year – a 23 percent increase from 2013. ”For the first time, indexed annuities held more than 50 percent market share of all fixed annuity sales in 2014.”
* Immediate income annuity sales spiked 17 percent in 2014, totaling $9.7 billion.