Total U.S. annuity sales rose 4% year over year to a record $123.9 billion in the second quarter of 2026, according to preliminary results from LIMRA's U.S. Individual Annuity Sales Survey released last week.
The latest numbers add to an already remarkable streak of strength in the annuity space, which according to LIMRA has logged nearly a dozen straight quarters of sales above $100 billion. The industry group also reported year-to-date sales of $231.3 billion for the first six months of 2026, a new first-half record in its tracking.
The surge is landing at an unusually volatile moment for advisors. In its late July policy meeting, the Federal Open Market Committee voted 9 to 3 to hold rates steady, a decision whose internal split moved fixed income markets more than the headline outcome. Cleveland Fed President Beth Hammack, Minneapolis Fed President Neel Kashkari and Dallas Fed President Lorie Logan each dissented in favor of an immediate 25-basis-point hike – the first time since September 2016 that three FOMC members have dissented with a unified hawkish view.
On top of that is the now five-month-old conflict involving Iran that continues to move energy markets and inflation expectations. On Tuesday, Treasury Secretary Scott Bessent told CNBC that a deal to reopen the Strait of Hormuz "is in sight," after President Trump warned that the latest round of talks represents Iran's "last chance" to end the fighting. Bessent's comments helped reverse an earlier spike in oil prices that had followed renewed uncertainty over whether a diplomatic resolution was achievable.
"Total annuity sales set an all-time quarterly record, the 11th consecutive quarter above $100 billion," said Bryan Hodgens, senior vice president and head of LIMRA research. "A combination of global tensions, market volatility and rising interest rates drove demand that lifted all major products and pushed the total market to a new high."
Registered index-linked annuities (RILAs) set a new quarterly record of $23.3 billion, up 11% from the first quarter and 22% higher than a year earlier. Year-to-date RILA sales totaled $44.4 billion, 21% above the same period in 2025. June was the second-highest sales month on record for the product, up 15% from May and more than 30% higher than a year earlier, as carriers kept shifting resources toward the category.
"RILA set another quarterly sales record as carriers continued to pivot toward these products and broaden their distribution," said Keith Golembiewski, assistant vice president and head of LIMRA Annuity Research. He noted that equity markets reaching new highs in June drew investors to a structure that blends upside participation with downside protection.
Fixed-rate deferred (FRD) annuity sales came in at $44.7 billion for the quarter, up 26% from the first quarter but down 2% from a year earlier. First-half FRD sales of $80.3 billion trailed last year's pace by 7%, though monthly sales rose roughly 15% both sequentially and year-over-year as crediting rates climbed across every duration.
"As crediting rates climbed across every duration, demand for fixed-rate deferred products accelerated," Golembiewski said, adding that investors seeking principal protection pushed sales sharply higher from the first quarter.
Fixed indexed annuity (FIA) sales rose to $30.7 billion, up 14% sequentially but 7% below the prior-year quarter, as average cap rates ran slightly below year-ago levels. Year-to-date FIA sales stood at $57.5 billion, down 5% from the first half of 2025. Rising cap rates during the quarter helped lift sales from the first-quarter trough, and monthly volume climbed more than 10% from the prior month while running roughly flat against a year earlier.
Traditional variable annuity (VA) sales reached $17.9 billion, up 4% from the first quarter and 25% higher than the second quarter of 2025. First-half VA sales of $35.1 billion were 21% above the year-ago period. Record equity market performance in June supported results, even as volatility during the quarter tempered the pace of gains; June VA sales alone rose more than 10% from May and topped 30% growth from a year earlier.
Income annuities notched records of their own. Single premium immediate annuity (SPIA) sales hit $4.0 billion, up 12% from a year earlier and 9% from the first quarter. Deferred income annuity (DIA) sales reached $1.3 billion, up 5% year over year and 32% sequentially.
LIMRA noted that rising interest rates, paired with an aging U.S. population moving closer to retirement, have made income annuities increasingly attractive and could push demand higher in coming quarters.
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