US annuity sales reached $113.5 billion in Q1, 21% higher than last year. It was also the second-highest quarterly figure on record after the fourth quarter of 2023, according to LIMRA. There was solid and impressive growth across nearly every category, and the organization anticipates that sales will remain strong for the rest of the year. 

Bryan Hodgens, the head of LIMRA research, noted, “The remarkable sales trends over the past two years continued into 2024. Favorable economic conditions and rising investor interest in securing guaranteed retirement income have resulted in double-digit sales growth in every product line.” 

Fixed-rate deferred annuities accounted for the biggest share of sales at 42%. This segment generated $48 billion in revenue, a 16% increase from last year. 85% of fixed-rate deferred annuities had durations of less than 5 years. 

Fixed-indexed annuities set a new record in terms of quarterly sales at $29.3 billion, 27% higher than last year. The next highest contributor were income annuities. Among this category, single-premium immediate annuity sales were $4 billion, a 19% increase from last year, and deferred-income annuities were at $1.1 billion, 35% higher than last year. Registered index-linked annuities saw $14.5 billion in sales and continue to be the fastest-growing segment with a 40% growth rate.

Finsum: Annuity sales maintained their hot streak with a new record for Q1 sales and the second-highest quarterly figure. LIMRA attributes this to high interest rates and unease about the economic situation.