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Non-Variable Annuity Sales Climb 45%: LIMRA

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What You Need to Know

  • Sales of fixed-rate deferred annuities jumped 76%, year-over-year.
  • Registered index-linked annuity sales rose a little.
  • Sales of traditional variable annuities fell.

Sales of U.S. individual non-variable contracts increased 45% between the second quarter of 2021 and the latest quarter, to $52 billion, according to new issuer survey data from LIMRA.

Sales of all U.S. individual annuities rose 14%, year-over-year, to $78 billion.

Todd Giesing, an assistant vice president with the LIMRA Annuity Research unit, said in a comment, included in the results announcement, that stock market volatility and higher rates make traditional fixed-rate deferred annuities especially attractive.

“Our research shows fixed-rate deferred annuity manufacturers are, on average, offering interest rates more than four times that of a bank CD,” Giesing said.

Sales of multi-year guaranteed annuities and other traditional fixed-rate deferred annuities soared 76%, year-over-year.

Total variable annuity sales fell 21%, despite a modest increase in sales of registered index-linked annuities.

What It Means

To many clients who once thought fixed annuities looked like frogs, the products may suddenly look beautiful.

The Source

LIMRA is a nonprofit Windsor, Connecticut-based financial services research organization that’s funded by life insurers and other financial services industry organizations.

The Numbers

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

  • Fixed-rate deferred annuities: $28.2 billion (up from $16 billion).
  • Non-variable indexed annuities: $19.7 billion (up from $16.5 billion).
  • Traditional variable annuities: $15.4 billion (down from $22.7 billion).
  • Registered index-linked annuities: $10.5 billion (up from $10 billion).
  • Fixed immediate: $2 billion (up from $1.6 billion).

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