Fixed Indexed Annuities Are on a Roll
September 3, 2019 by Bernice Napach
Fixed indexed annuities are making a comeback following the demise of the Labor Department fiduciary rule last year and rising volatility in the current stock market, according to a new report from Cerulli Associates.
In the first quarter of 2019, sales of fixed indexed annuities (FIAs), which guarantee a minimum rate of return usually tied to the performance of an equity index, totaled $18 billion, up 24% from the year-ago quarter.
That’s roughly twice the annual sales growth they experienced between 2011 and 2016, before the introduction of the DOL fiduciary rule, which crushed sales.