Strong sales of registered index-linked annuities, or RILA contracts, helped life insurers generate year-over-year growth in annuity sales in the fourth quarter of 2020, in spite of the effects of COVID-19-related social distancing rules and low interest rates.
U.S. sales of individual annuities increased to $59 billion in the fourth quarter, up 2% from the total for the fourth quarter of 2019, according to issuer survey data compiled by the Secure Retirement Institute, which is an arm of Windsor, Connecticut-based LL Global Inc.
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The sales increase in the fourth quarter was the only year-over-year quarterly increase life insurers recorded in 2020.
The fourth quarter started Oct. 1, 2020, and ended Dec. 31, 2020.