In the third quarter of 2023, annuity sales in the U.S. saw a substantial 11% year-over-year increase, totaling $89.4 billion, thanks to favorable economic conditions. This growth is attributed to a rebound in equity markets and rising interest rates, allowing insurance companies to enhance their annuity offerings to investors. LIMRA anticipates that 2023 sales will surpass the record set in 2022.
In the first nine months of 2023, total annuity sales surged by 21% to reach $270.6 billion. Registered Index-Linked Annuities (RILA) achieved a new quarterly record, reaching $12.6 billion in the third quarter, a 19% increase from the previous year. LIMRA predicts that RILA sales will continue to break records in 2023, likely growing by at least 10%.
Fixed Indexed Annuity (FIA) sales were $23.3 billion in the third quarter, up 9% from the previous year, with year-to-date sales increasing by 25% to $71.7 billion. Income annuity products benefited from rising interest rates, with Single Premium Immediate Annuity (SPIA) sales at $3 billion in the third quarter, marking a 20% increase from the previous year. Deferred Income Annuity (DIA) sales increased by 88% to $950 million in the third quarter and surged by 104% in the first nine months of 2023, reaching $2.8 billion.
Income annuities are expected to reach record levels in 2023, with sales exceeding $16 billion for the year.
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