What You Need to Know
- RILA contract sales came close to doubling.
- Fixed-rate deferred annuities also sold well.
- Sales of fixed immediate annuities fell sharply.
Strong sales of registered index-linked annuities, or RILA contracts, continued to push up U.S. life insurers’ sales of individual annuities in the first quarter.
U.S. sales of individual annuities increased to $61 billion in the first quarter, up 9% from the total for the first quarter of 2020, according to issuer survey data compiled by the Secure Retirement Institute, which is an arm of Windsor, Connecticut-based LL Global Inc.
The new sales increase follows a 2% year-over-year increase for the fourth quarter of 2020. Social distancing rules related to the COVID-19 pandemic hit sales hard in the second and third quarters of 2020.