Annuity Sales Reach Lowest Level in 16 Years, LIMRA Study Finds
In the first half of the year, total annuity sales decreased 10 percent to $105.8 billion - first half sales have not been this low since 2001 -- according to LIMRA Secure Retirement Institute’s Second Quarter 2017 U.S. Retail Annuity Sales Survey. Second quarter total annuity sales were $53.9 billion, which marks the fifth consecutive quarter of decline in overall annuity sales.
U.S. variable annuity sales were $24.7 billion, which was the fourteenth consecutive quarter of decline. Fixed annuity sales were also down at 7 percent to $29.2 billion. Fixed rate deferred annuities sales dropped 11 percent in the second quarter to $9.3 billion. Deferred income annuity sales were down 31 percent to $600 million. Single premium income annuity sales were down to $2.2 billion in the second quarter.
There were some increases, indexed annuity sales made a 15 percent increase in the second quarter to $15.6 billion. Fee-based variable annuity sales actually increased in the second quarter to $570 million.