High interest rates led to record sales of fixed annuities in Q1, with every category experiencing double-digit or better YoY growth, according to LIMRA’s survey representing 83% of the market.
Sales of fixed annuities in the US surged in Q1 2023, with fixed-rate deferred annuities accounting for 44% of the total annuity market and bringing in nearly $41bn in sales, a Year over Year (YoY) increase of 157%. Sales of fixed-indexed annuities rose 42% YoY, hitting a new high of over $23bn.
These strong sales helped push total annuity sales for Q1 to almost $93bn, a record that is 47% higher than the previous year. Sales of deferred income annuities and single premium immediate annuities also hit record highs, with both products experiencing significant YoY increases.
LIMRA Annuity Research is forecasting total annuity sales in 2023 to exceed $300bn for the second consecutive year.
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