The post-COVID annuity sales surge is waning, but “economic anxiety” may be sparking a second wave.
Total Q1 annuity sales were $105.4 billion, down 1% from the record set in first quarter 2024, according to preliminary results from LIMRA’s U.S. Individual Annuity Sales Survey, representing 84% of the total annuity market.
Bryan Hodgens, senior vice president and head of LIMRA research, said economic concerns could still drive annuity sales higher.
“Our latest Consumer Sentiment Survey shows Americans’ concern about the economy has risen sharply since January,” Hodgens said. “This growing economic anxiety drove March sales results to be the second highest in history. LIMRA expects the current environment will likely attract more investors to registered indexed-linked and fixed-indexed annuities, which offer greater protected growth opportunity.”
As it stands, total annuity sales topped $100 billion for the sixth consecutive quarter, he added.
“While all fixed annuity product line sales dropped below the record first quarter sales in 2024, sales of these products remain at levels higher than historical norms,” Hodgens said. “LIMRA believes broader distribution, product innovation and, most importantly, greater investor awareness and interest in the investment protection fixed annuities offer, will keep fixed annuity product sales strong through 2025.”