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Fixed indexed annuities grow by 25% YoY, Rilas up 6%

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People moves

Unprecedented long-term market volatility in 2022 pushed retirement investors towards the protection offered by fixed annuities, propelling a record-high US$312.8 billion in total US annuity sales.

According to Limra’s 2022 Individual Annuity Sales Survey, total 2022 annuity sales increased 23% over 2021 results and were 18% higher than the previous record of US$265 billion set in 2008.

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‘The interest rate dip in December spurred investor demand looking to lock in the favorable rates before they dropped further,’ said Todd Giesing, assistant vice president, LIMRA Annuity Research.

In the fourth quarter, bank sales more than doubled (117%) to US$21.8 billion. In 2022, bank sales were a record US$73.7 billion, 69% higher than in 2021. This is the first-time banks have led total annuity sales since 2004, accounting for

24% of the US annuity market in 2022, according to Limra.

Fixed indexed annuity (FIA) sales also had a record quarter and year. In the fourth quarter, FIA sales were US$22.3 billion, a 34% increase from the prior record set in the fourth quarter 2021. For the year, FIA sales were US$79.8 billion, up 25% from 2021, and 9% higher than the record set in 2019.

Registered index-linked annuity (Rila) sales were US$10.1 billion in the fourth quarter, down 2% from the fourth quarter 2021. Despite lower fourth-quarter results, total Rila sales reached US$41.1 billion in 2022, six percent higher than prior year and a new all-time high for the product line’s sales.

Traditional variable annuity (VA) sales continued their downward trend. In the fourth quarter, traditional VA sales fell 41% to US$12.7 billion. In 2022, traditional VA sales totaled US$61.8 billion, down 29% from 2021 results.

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