Higher Rates Rocket Fixed Annuities to New Sales Growth Dimension
January 31, 2023 by Allison Bell
Rising credit rates and a strong market led to stunning growth numbers for U.S. sales of individual fixed deferred annuities in the fourth quarter of 2022, according to new, preliminary issuer survey results from LIMRA.
Total sales of individual annuities soared 39% between the fourth quarter of 2021 and the latest quarter, to $87 billion.
Sales of variable annuities fell 30%, year over year, to $22.5 billion. But overall contract sales increased because fixed product sales climbed 110%, to $65 billion. That increase, in turn, was due largely to a 241% increase in sales of fixed deferred annuities, to $37.5 billion.
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