Total annuity sales rose 16% in 2021, to $254.8 billion, the third highest total on record and the highest level since 2008, according to data collected by the Secure Retirement Institute.
By category, total variable annuity sales were $125.6 billion, 27% higher than 2020, while traditional VA rose 16% to $86.6 billion.
“We have not seen traditional VA sales growth at this level in over a decade. Heightened concern about potential changes to the tax code drove growth in investment-focused, nonqualified product sales,” Todd Giesing, assistant vice president of annuity research at the institute, said in a statement. “In 2021, fee-based products experienced the largest gains as registered investment advisors and broker-dealers sought out tax-deferral solutions for their clients.”
Registered index-linked annuity sales hit a record $39 billion last year, 62% higher than the total in 2020, which Geising attributed to “current economic conditions and expanded competition as new carriers enter the market.”
Sales of fixed annuities increased 7% to $129.2 billion in 2021, while fixed indexed annuity sales were $63.7 billion, up 15% from the prior year.
“Improved interest rates and product innovation around cap rates helped address the pricing challenges FIA carriers faced early in 2021, making the products more attractive to investors,” Giesing said.
Fixed-rate deferred annuity sales rose 2% to $53.4 billion, while deferred income annuity sales totaled $1.9 billion, which was up 14% from 2020, but still below 2019’s $2.5 billion.
The Secure Retirement Institute is part of the insurance research and education group LL Global.
By listening for what truly matters and where clients want to make a difference, advisors can avoid politics and help build more personal strategies.
JPMorgan and RBC have also welcomed ex-UBS advisors in Texas, while Steward Partners and SpirePoint make new additions in the Sun Belt.
Counsel representing Lisa Cook argued the president's pattern of publicly blasting the Fed calls the foundation for her firing into question.
The two firms violated the Advisers Act and Reg BI by making misleading statements and failing to disclose conflicts to retail and retirement plan investors, according to the regulator.
Elsewhere, two breakaway teams from Morgan Stanley and Merrill unite to form a $2 billion RIA, while a Texas-based independent merges with a Bay Area advisory practice.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
