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Life Health > Annuities > Fixed Annuities

Turmoil Helps Sales of Annuities With Guarantees

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Stock market ups and downs pushed sales of U.S. individual annuities with built-in guarantees higher in the first quarter.

Sales of all types of fixed annuities increased to $35 billion in the quarter, up 14% from the total for the first quarter of 2021, according to preliminary results from a Secure Retirement Institute issuer survey.

Sales of variable annuities 5% over that same period, to $28 billion.

Overall sales of all types of U.S. individuals annuities increased 4%, to $64 billion.

Sales of non-variable indexed annuities — which protect the holder’s account value but the holder benefit from investment market gains — performed especially well.

Annuity Sales Details

Here’s how sales of six types of annuities changed between the first quarter of 2021 and the latest quarter:

  • Non-variable indexed annuities: $16 billion (up 21%).
  • Fixed-rate deferred annuities: $16 billion (up 10%).
  • Structured settlements: $1.1 billion (up 10%).
  • RILA contracts: $9.3 billion (up 2%).
  • Fixed immediate: $1.5 billion (unchanged).
  • Traditional variable annuities: $19 billion (down 8%).

(Image: Shutterstock)


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