Fixed indexed annuity sales rise 14% to $20 billion in second quarter

Fixed indexed annuity sales rise 14% to $20 billion in second quarter
Limra Secure Retirement Institute data finds VA sales stopped declining.
AUG 21, 2019

Fixed indexed annuity sales totaled $20 billion in the second quarter, 14% higher than prior year results, according to data compiled by the Limra Secure Retirement Institute. [More:​ Indexed annuity sales projected to grow nearly 40% by 2023] "The second quarter's FIA sales total represents the highest quarterly sales for FIAs ever," said Todd Giesing, the organization's annuity research director. "Despite declining interest rates, we are forecasting the current momentum of FIA sales to continue through the end of the year and expect sales of FIAs to exceed $70 billion for 2019." In the first six months of 2019, FIA sales were $38 billion, an increase of 18%, compared with the first six months of 2018. Fee-based FIA sales were $193 million in the second quarter. While this marks major growth for this market (188% over prior year), fee-based FIAs hold less than 1% of the total FIA market. Total annuity sales were $63.9 billion in the second quarter, up 7% compared with the prior year results. This is the highest quarterly sales recorded since the first quarter 2009, and the third consecutive quarter where total annuity sales surpassed $60 billion. Year to date, total annuity sales were $124.8 billion, an increase 11%, compared with results from the first half of 2018. Limra said that fixed annuities represented 60% of the total annuity market in the second quarter, and that their sales have outperformed the sales of variable annuities in 12 of the last 14 quarters. [More:​ Fixed annuity sales smash previous record] After two consecutive quarters of declines, VA sales were $25.8 billion in the second quarter, level with second quarter 2018 results. Limra SRI is forecasting total VA sales to be under $100 billion for 2019. [Recommended video:​ Deploying fintech to improve the client experience and prevent fraud]

Latest News

Gen X and millennials are rethinking retirement as pensions disappear
Gen X and millennials are rethinking retirement as pensions disappear

Eight in 10 pre-retirees say the US retirement system wasn't built for them and most still haven't planned how to make their money last.

Cerulli: Advisors struggle to turn 401(k) savers into wealth clients
Cerulli: Advisors struggle to turn 401(k) savers into wealth clients

Just over 10% of advisors' wealth clients come from defined contribution plans, as capacity, data and technology gaps block the bridge to wealth

Alto to buy Forge Trust from Schwab in self-directed IRA push
Alto to buy Forge Trust from Schwab in self-directed IRA push

Deal creates a $20B-plus custody platform for private market investing in IRAs, months after Schwab closed its Forge Global purchase

Wall Street bonanza! The Street on track to hit a record $90 billion in profits: Report
Wall Street bonanza! The Street on track to hit a record $90 billion in profits: Report

Despite the good times, advisors should tread carefully, said one veteran industry executive.

Most workers have retirement plans but no retirement strategy
Most workers have retirement plans but no retirement strategy

Gallagher data reveals a huge gap in financial confidence between employees who work with an advisor and those who don't.

SPONSORED Built on insurance experience to deliver on long-term promises

Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.

SPONSORED In the Age of AI, Trust Becomes the Advisor's Greatest Asset

As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor