Sales of indexed individual annuities continued to climb in the fourth quarter of 2021, according to new survey data from the Secure Retirement Institute.
Insurers increased sales of non-variable indexed annuities 18% between the fourth quarter of 2020 and the latest quarter, to $17 billion.
Production of registered index-linked annuity contracts, which are also known as RILA contracts, or as index-linked variable annuities, rocketed up 26%, to $11 billion.
Overall annuity sales increased 8%, to $59 billion.
When life insurers write traditional fixed annuities, they offer a fixed crediting rate and promise to protect the holder’s account value. The insurers get the cash needed to pay the interest from the assets in their own “general account” portfolios.