Led by record demand for registered index-linked annuities, total third-quarter annuity sales rose 11% year over year to $89.4 billion, according to preliminary results from Limra’s U.S. Individual Annuity Sales Survey.
Limra said RILA sales hit a new record in the third quarter of $12.6 billion, up 19% from the same period last year. RILA sales for the first nine months of the year were $34.4 billion, 11% higher than the same period last year.
Total annuity sales increased 21% to $270.6 billion through the first nine months of 2023, LIMRA said.
“Equity markets rebounding in 2023 combined with a strong increase in interest rates has allowed insurance companies to add additional value in their annuity offerings to investors,” Todd Giesing, assistant vice president at Limra Annuity Research, said in a statement. “Limra expects 2023 sales will surpass the record sales set in 2022.”
In addition to the strong RILA performance, the report showed fixed indexed annuity sales were $23.3 billion in the third quarter, up 8% from last year's Q3. FIA sales increased 25% to $71.7 billion year-to-date.
Rising interest rates also boosted single-premium immediate annuity sales, which came in at $3 billion in the third quarter, 20% higher than the prior year’s results. In the first nine months of 2023, SPIA sales jumped 63% to $9.8 billion, according to the Limra report.
Meanwhile, deferred income annuity sales totaled $950 million, up 88% from sales in the third quarter of 2022, Limra said. In the first nine months of the year, DIA sales jumped 104% to $2.8 billion. And fixed-rate deferred annuity sales were $34.4 billion in the third quarter, which was a 13% increase from the second quarter and 15% higher than third-quarter 2022 results.
On the flip side, Limra said traditional variable annuity sales were $13.1 billion in the third quarter, down 7% from the third quarter 2022 results. So far this year, traditional annuity sales have totaled $39.2 billion, falling 20% compared with the same period in 2022.
Wells Fargo adds two bank-channel recruits, UBS lands a JPMorgan Chase veteran, and a multi-family office lifts Atlas past $1B
“The state comes down on you in years when you make 40% returns for clients,” said Bill Swayne, the advisor and son of Candace Swayne.
The Independent broker-dealer giant has had “active conversations” with the Claude maker, which is days away from its expected IPO
For Gen X clients entering life after work, answering the financial question isn't enough to solve the entire retirement equation.
Tools from Grantd, Income Lab and Healthspan Wealth aim to keep RIAs involved in clients’ biggest money decisions
Growing wealth, evolving priorities, and untapped opportunities are reshaping how women approach long-term investing.
Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.
