In 2023, the US annuity market flourished amid strong economic conditions and heightened investment security concerns, reaching an unprecedented milestone with sales hitting a record $385 billion, as reported by Limra's US Individual Annuity Sales Survey. 

Helping drive home this surge were fixed indexed annuities also witnessed robust growth, reaching $95.6 billion in sales, while traditional variable annuities faced a decline, recording their lowest sales figures in both quarterly and annual comparisons.

This annuity renaissance, a 23 percent increase from 2022, was also aided by the fixed annuity segment, which soared by 36 percent to $286.2 billion, marking a second consecutive year of record-breaking performance. Additionaly, traditional variable annuities were outstripped by registered index linked annuities for the first time ever.

Finsum: Index annuities are having an edge in the current macro environment with volatility looming but investors wanting higher return.