Annuity sales hit record $126.3B as RILA sales top $25B

U.S. annuity sales climbed to a record $126.3 billion in the third quarter of 2026, extending the industry's streak of quarterly sales above $100 billion to 12 consecutive quarters, according to LIMRA.

Sales increased 4% from the third quarter of 2025, surpassing the previous quarterly record set in the second quarter. Through September, total annuity sales reached $355 billion, up 2% from the first nine months of 2025.

The latest results follow a record year for the industry in 2025, when total annuity sales reached $464.1 billion, a 7% increase from 2024, according to LIMRA's final annual figures.

Higher crediting rates following the Federal Reserve's September rate increase and strong equity markets helped lift sales across several product categories, LIMRA said. Investors continued to seek products offering protection alongside the potential for market growth.

"Annuity sales set another all-time quarterly record, the 12th consecutive quarter above $100 billion," said Bryan Hodgens, senior vice president and head of LIMRA research.

RILA sales top $25 billion

Registered index-linked annuity sales reached a new quarterly record of $25.3 billion, topping $25 billion for the first time in a single quarter.

Sales increased 22% from the third quarter of 2025 and 8% from the previous quarter. Through September, RILA sales totaled $69.7 billion, up 21% from the same period last year.

The growth reflects a broader shift toward indexed annuity products. RILAs and fixed indexed annuities accounted for 45% of total annuity sales in 2025, compared with 24% a decade earlier, according to LIMRA.

"Investors continue to value RILA's combination of upside market participation and downside protection," said Keith Golembiewski, assistant vice president and head of LIMRA Annuity Research.

Strong equity markets have also contributed to demand for RILAs, which offer investors the potential to participate in market gains while providing a measure of protection against losses.

"With equity markets hovering near record highs, RILA's combination of market growth potential and downside protection is especially attractive to investors," said Stacy LaiFook, vice president of Nationwide's Annuity Business Development.

Fixed annuity sales show mixed results

Fixed-rate deferred annuities remained the largest product category, with third-quarter sales of $44.5 billion, up 2% from a year earlier. However, year-to-date sales fell 6% to $121.9 billion.

Fixed indexed annuity sales totaled $30.7 billion, unchanged from the second quarter but down 8% from the third quarter of 2025. Through September, FIA sales reached $88.1 billion, a 6% decline from the same period last year.

LIMRA said FIAs face competition from fixed-rate deferred products, which tend to respond more quickly to rising interest rates, as well as RILAs.

Variable and income annuities

Traditional variable annuity sales increased 11% year over year to $18.2 billion in the third quarter. Through September, sales reached $53 billion, up 17% from the same period in 2025.

Positive equity market performance helped support sales, LIMRA said. Traditional variable annuities have also benefited from strong markets and enhanced living benefits, according to LaiFook.

Single premium immediate annuity sales totaled $4.1 billion, up 6% from a year earlier. Deferred income annuity sales reached $1.3 billion, down 1% year over year.

Looking ahead, Nationwide expects the industry to set another annual sales record in 2026. LaiFook cited the aging U.S. population and the number of people approaching retirement without traditional pension income as factors supporting demand.

A Nationwide survey cited by LaiFook found that 76% of annuity owners were confident they would be able to retire when they wanted, compared with 49% of people who did not own annuities.

LIMRA also changed its sales definition beginning in January 2026. The updated measure includes money paid into both new and existing individual annuity contracts, including certain internal transfers and exchanges within the same company. As a result, reported sales include more than purchases of new contracts.

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This report compiled by InsuranceNewsNet staff.