US annuity sales reached a new high in the second quarter of 2025, with total sales rising 8% year over year to $119.5 billion, according to LIMRA’s US Individual Annuity Sales Survey.
The survey, which covers 92% of the US annuity market, shows that this figure surpasses the previous record set in the first half of 2024.
In the first six months of 2025, total annuity sales amounted to $226.1 billion, an increase of 4% compared to the same period last year.
LIMRA reports that fixed-rate deferred annuity (FRD) sales climbed 11% to $45.2 billion in the second quarter, marking the second-highest quarterly sales for FRD products. Year-to-date, FRD annuity sales reached $84.9 billion, up 1% from the prior year.
Over the last three years, annuities have repeatedly set new sales records, which continued this quarter," said Bryan Hodgens (pictured above, left), senior vice president and head of LIMRA research. "While favorable economic conditions have bolstered sales, there also have been systemic market changes that have expanded the market.”
Hodgens said that product innovation, expanded capitalization, and increased awareness among investors and advisors about guaranteed income in retirement have contributed to the market’s growth. LIMRA expects annuity sales to surpass $400 billion in 2025.
LIMRA previously reported that quarterly annuity sales exceeded $100 billion in all four quarters of 2024, marking the first time this milestone was reached in every quarter of a single year. Annual annuity sales for 2024 totaled $432.6 billion, a 12% increase from the previous year, and RILA sales surpassed traditional variable annuity sales for the first time.
Fixed indexed annuity (FIA) sales totaled $32.8 billion in the second quarter, up 5% from the prior year. FIA sales for the first half of 2025 reached $60.6 billion, a 1% increase over the same period in 2024.
“FIA sales remain a steady growth engine for the overall annuity market," said Keith Golembiewski (pictured above, right), assistant vice president and director of LIMRA Annuity Research. "Since 2020, FIA sales have doubled as interest in protected investment growth opportunities increased.”
Registered index-linked annuity (RILA) sales set new records, with second-quarter sales reaching $19.1 billion, up 15% year over year. For the first half of 2025, RILA sales totaled $36.7 billion, an 18% increase.
Golembiewski noted that RILA’s appeal lies in its combination of protected growth with attractive caps and participation rates, and that new entrants and products are expected to drive continued growth.
Traditional variable annuity (VA) sales declined 3% to $14.7 billion in the second quarter, affected by market volatility in April. Year-to-date, VA sales were $30.2 billion, up 4% from the prior year. Single premium immediate annuity (SPIA) sales rose 6% to $3.6 billion in the second quarter, though first-half SPIA sales fell 5% to $6.6 billion.
Deferred income annuity (DIA) sales rebounded 17% to $1.5 billion in the second quarter, but year-to-date sales were down 2% at $2.4 billion.
Meanwhile, AM Best has maintained a “stable” outlook for the US life and annuity insurance segment, citing strong capitalization, robust topline growth, and stable profitability. The agency noted that favorable interest rates have driven record-high sales in individual annuities, including fixed index and registered index-linked annuity products.
“Over the past five years, retirees and pre-retirees have grappled with substantial economic uncertainty – heightened market volatility, inflation, and potential public policy changes – that could meaningfully impact their financial security in retirement,” Hodgens said.
He noted that LIMRA’s Alliance for Lifetime Income will focus on highlighting annuities’ value proposition and the peace of mind they can provide.
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