Total quarterly annuity sales exceeded $100 billion in all four quarters of 2024, marking the first time this milestone was reached in every quarter of a single year, according to LIMRA’s US Individual Annuity Sales Survey.
Annual annuity sales reached $432.6 billion in 2024, a 12% increase from the previous year. This marks the third consecutive year of record-high annuity sales, totaling $1.1 trillion over that period.
In the fourth quarter, US annuity sales totaled $100.6 billion, a 13% decline from the record-setting fourth quarter of 2023. Lower interest rates contributed to declines in fixed-rate deferred (FRD) and income annuity sales, affecting overall results.
Among other annuity figures, registered index-linked annuity (RILA) sales increased 35% to $17.5 billion in the fourth quarter. For the full year, RILA sales rose 38% to $65.4 billion, surpassing traditional variable annuity sales for the first time.
Traditional variable annuity (VA) sales also increased in 2024 after three years of declines. Fourth-quarter VA sales rose 35% year-over-year to $16.6 billion, bringing total annual sales to $60.8 billion, an 18% increase.
Fixed indexed annuity (FIA) sales reached $31.8 billion in the fourth quarter, down 10% from the record-high third-quarter results but 28% higher a year ago. Total FIA sales for 2024 grew 32% to $126.8 billion. LIMRA said it expects FIA sales to remain above $100 billion in 2025, although lower interest rates could reduce demand.
Meanwhile, fixed-rate deferred (FRD) annuity sales fell 52% to $28.3 billion from a year earlier. Annual FRD sales also declined 8% to $152.3 billion. Still, FRD sales are expected to remain above $120 billion in 2025, which would be twice the levels recorded before 2022.
Bryan Hodgens, senior vice president and head of LIMRA research, attributed the broad growth to favorable economic conditions and increased investor awareness of annuity protections and guarantees.
“This was a remarkable year for the US annuity market with nearly 80% of participating carriers reporting positive growth,” Hodgens said.
Hodgens also noted that while sales are not expected to match the record levels of the past two years, LIMRA projected total annuity sales to remain above $350 billion in 2025 and $300 billion through 2027.
