FIAs and RILAs post record sales in Q3

WINDSOR, Conn., Nov. 25, 2024 — Representing 45% of U.S. annuity sales, record-high fixed indexed and registered index-linked annuity sales propelled the continued growth in the U.S. annuity market in the third quarter.

Total annuity sales increased 30% year over year to $114.7 billion in the third quarter 2024, according to LIMRA’s U.S. Individual Annuity Sales Survey, which represents 92% of the total market. In the first nine months of 2024, total annuity sales increased 23% to $332 billion.

“This was a strong quarter for U.S. individual annuity sales. All product lines posted double-digit increases, and overall sales were less than 1% lower than the record-high sales set in fourth quarter 2023,” said Bryan Hodgens, senior vice president and head of LIMRA research. “While interest rates have declined, heightened market uncertainty will likely continue to draw investors seeking principal protection and guaranteed growth. LIMRA expects annuity sales to set a new record in 2024.”

FIA sales

For the third consecutive quarter, FIA sales set a new record. FIA sales were $35.2 billion in the third quarter, up 56% from the prior year’s results. Year-to-date FIA sales increased 34% to $95.1 billion.

“Strong equity market performance and a desire for principal protection continue to attract investor interest in FIA products,” said Hodgens. “To remain competitive, carriers are refining their indices and introducing more lucrative crediting options.”

RILA sales

For the sixth consecutive quarter, RILA sales set a new quarterly record, totaling $17 billion in the third quarter of 2024, growing 35% from the prior year. YTD, RILA sales were $47.9 billion, 39% higher than the same period in 2023.

“In the first nine months of 2024, RILA sales surpassed the total RILA sales collected in 2023 ($47.9 billion vs. $47.4 billion), noted Hodgens. “LIMRA expects RILA sales to remain strong through 2025.”

Fixed-rate deferred annuity sales

Fixed-rate deferred annuity sales were $40.3 billion in the third quarter, a 17% increase from third quarter 2023 results. In the first nine months of 2024, FRD sales totaled $124 billion, up 17% year over year.

“While FRD sales growth remained strong through the third quarter, our October preliminary figures suggest sales are beginning to soften in the face of repeated interest rate cuts (in September and November),” noted Hodgens. “That said, FRD contracts still offer higher yields when compared with other short-term investments. If market volatility increases, LIMRA expects there will continue to be an increased demand for FRDs with clients seeking principal protection.”

Income annuity sales

Single premium immediate annuity (SPIA) sales were $3.5 billion in the third quarter, 20% higher than the prior year’s results. In the first nine months of 2024, SPIA sales rose 8% to $10.5 billion.

Third quarter deferred income annuity (DIA) sales were $1.3 billion, a 41% jump from sales in the third quarter 2023. In the first nine months of the year, DIA sales grew 33% to $3.8 billion.

Traditional variable annuity sales

For the third consecutive quarter, traditional variable annuity (VA) recorded sales year-over-year growth. Traditional VA sales were $15.1 billion in the third quarter, 16% higher than third quarter 2023 results. YTD, traditional VA sales totaled $44.2 billion, a 13% gain year over year.

For more details on the sales results, go to Annuity Estimates (2024 Third Quarter) in LIMRA’s Fact Tank.