Total US annuity sales reached $119.5 billion in the second quarter, an 8% increase from a year ago and the highest quarterly result on record, according to LIMRA’s latest US Individual Annuity Sales Survey.
The report, which covers 92% of the market, shows that annuity sales have now exceeded $100 billion for seven consecutive quarters, with first-half 2025 sales totaling $226.1 billion – up 4% from the same period last year and surpassing the previous record set in 2024.
The data released Thursday show a slight upward revision from LIMRA's preliminary estimates in July, which had pegged total annuity sales for H1 2025 at $223 billion.
LIMRA attributes the continued growth to a combination of favorable economic conditions and broader systemic shifts in the market.
“Over the last three years, annuities have repeatedly set new sales records, which continued this quarter,” said Bryan Hodgens, senior vice president and head of LIMRA research. He added that product innovation, expanded capitalization, and greater awareness among investors and advisors of the need for guaranteed retirement income have all contributed to the surge.
With the continued positive momentum, LIMRA projects that total annuity sales could surpass $400 billion by year-end.
Among product categories, fixed-rate deferred annuities saw sales of $45.2 billion in the second quarter, up 11% year over year and marking the second-highest quarterly total for the product. Year-to-date, fixed-rate deferred annuity sales reached $84.9 billion, a 1% increase.
Keith Golembiewski, assistant vice president and director of LIMRA annuity research, said strong sales were partly driven by policies coming out of contract as the market anticipates interest rate cuts. He noted that fixed-rate deferred crediting rates “continue to outperform CD rates,” making these products attractive for risk-averse investors.
Fixed indexed annuities likewise set a new record, with second-quarter sales rising 5% to $32.8 billion and first-half sales totaling $60.6 billion, up 1% from last year. Golembiewski described fixed indexed annuities as a “steady growth engine” for the market, noting that sales have doubled since 2020.
Registered index-linked annuities (RILAs) posted the strongest growth, with second-quarter sales up 15% year-over-year to hit $19.1 billion and first-half sales jumping 18% to $36.7 billion.
Golembiewski said the appeal of RILAs lies in their “protected growth with attractive caps and participation rates,” and he expects continued growth as more broker dealers add RILAs to their product mix.
Traditional variable annuity sales faltered, declining 3% year-over-year in the second quarter to $14.7 billion, though year-to-date sales were up 4% at $30.2 billion.
Income annuities showed mixed results: single premium immediate annuity sales rose 6% to $3.6 billion, while deferred income annuity sales rebounded 17% to $1.5 billion after a soft first quarter, ultimately reaching $2.4 billion in the first half.
Hodgens noted that “retirees and pre-retirees have grappled with substantial economic uncertainty” in recent years, including market volatility and inflation, which has led to greater interest in annuities among both advisors and investors.
LIMRA also revealed its latest annuity sales leaderboard, with New York Life, Athene, Corebridge, Equitable, and Allianz Life of North America emerging as the top five companies by total sales. Annuity sales for those five firms in the second quarter were:
Focusing on the variable annuity segment, the leaders were Equitable Financial, Jackson National Life, and Lincoln Financial Group. For fixed annuities, Athene Annuity & Life, New York Life, and Corebridge Financial took the top spots.
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