Higher Rates Rocket Fixed Annuities to New Sales Growth Dimension

Details

LIMRA is a Windsor, Connecticut-based research organization that’s part of LL Global, a consortium owned by life insurers and other financial services companies.

Here’s how some types of products performed between the fourth quarter of 2021 and the fourth quarter of 2022:

Fixed-rate deferred annuities: $37.5 billion (up 241%, from $11.0 billion)
Fixed immediate annuities: $3.1 billion (up 94%, from $1.6 billion)
Non-variable indexed annuities: $22 billion (up 32%, from $16.6 billion)
Registered index-linked annuities: $9.9 billion (down 4%, from $10.3 billion)
Traditional variable annuities: $13 billion (down 42%, from $21.7 billion)

The Future

Todd Giesing, a LIMRA annuity research executive, called the increase in fixed annuity sales “extraordinary.”

“Our forecast suggests that protection products will continue to boost growth in the annuity market for the next several years,” he said.

(Photo: Blue Planet Studio/Shutterstock)