Record-breaking quarter for US annuity sales

Following record-high sales in 2022, total first quarter annuity sales stand at US$92.9 billion, a 47% increase from the prior year. This is the highest quarterly sales level ever recorded, according to LIMRA’s U.S. Individual Annuity Sales Survey.

Fixed-indexed annuity sales had a record-breaking quarter at US$23.1 billion, up 42% from first quarter 2022 results and four percent higher than the record set in the fourth quarter of 2022.

first quarter of 2023, up eight percent from the prior year.

North American Company for Life and Health Insurance, a member company of Sammons Financial Group, has deployed the Barclays Transitions 12 VC Index and Barclays Transitions 6 VC Index as indexlinked crediting options offered by its new NAC Control. X FIA.

Both indices seek to provide investors with consistent broadbased exposure to US equities while seeking to stabilise performance throughout each economic cycle by incorporating commodities and longer duration US treasuries. The index transitions between allocation trend scenes based on market conditions using dynamic trend rotation.

To further control risk, both indices aim to limit their annual volatility to a six and 12% target using Barclays’ proprietary intraday volatility forecasting technology.

The new exclusive Barclays Transitions Indices are designed to follow the equity markets and capture as much upside as possible while managing risk during changing market conditions, said Bryce Biklen (pictured), North American’s chief distribution officer.

‘Economic conditions remain favorable for FIA products, and this is forecasted to continue throughout the year,’ said Todd Giesing, assistant vice president, LIMRA Annuity Research, adding that FIA sales are expected to grow as much as 10% in 2023, ‘as investors continue to seek out solutions with a balance of protection and growth’.

Registered index-linked annuity (RILA) sales amounted to US$10.4 billion in the

LIMRA is predicting RILA sales to have another record-breaking year in 2023, likely growing at least 10% as RILA’s value proposition will continue to attract investors seeking a greater return on investment in exchange of some of the downside risks.

According to LIMRA, traditional variable annuity (VA) sales continued to slide posting sales of US$12.9 billion in the first quarter, down 30% from first quarter 2022 results - with market volatility expected to remain high, LIMRA is forecasting sales growth in this category to be flat in 2023.