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WINDSOR, Conn., Sept. 4, 2025—Total U.S. annuity sales increased 8% year over year to a record high $119.2 billion in the second quarter, according to LIMRA’s U.S. Individual Annuity Sales Survey, which represents 92% of the total U.S. annuity market. This tops the record set in the first half of 2024.     

In the first half of 2025, annuity sales were $225.8 billion, up 4% from the prior year's results. This exceeds the sales record set in the first six months of 2024.

“Over the last three years, annuities have repeatedly set new sales records, which continued this quarter. While favorable economic conditions have bolstered sales, there also have been systemic market changes that have expanded the market,” said Bryan Hodgens, senior vice president and head of LIMRA research. “Product innovation, expanded capitalization and growing awareness by both investors and advisors of the need to build in guaranteed income into retirement planning have lifted the market. Based on the sales trajectory, LIMRA is expecting sales to surpass $400 billion in 2025.”

Fixed-Rate Deferred
Total fixed-rate deferred annuity (FRD) sales were $45.2 billion in the second quarter, 11% higher than second quarter 2024 sales. This is the second-highest quarterly sales recorded for FRD products. Year-to-date (YTD), FRD annuity sales totaled $84.9 billion, up 1% year over year.

“Second quarter FRD sales were strong, in part due to policies coming out of contract as the market anticipates interest rate cuts,” said Keith Golembiewski, assistant vice president and director of LIMRA Annuity Research. “Equity market volatility remains a concern for conservative investors and FRD crediting rates, on average, continue to outperform CD rates. LIMRA expects these products will continue to be an attractive, short-term solution for risk-adverse investors.”

Fixed Indexed Annuities
Fixed indexed annuity (FIA) sales totaled $32.8 billion in the second quarter, 5% higher than the prior year’s results. FIA sales set a new record in the first half of 2025. FIA sales were $60.6 billion, up 1% from the first half of 2024.

“FIA sales remain a steady growth engine for the overall annuity market. Since 2020, FIA sales have doubled as interest in protected investment growth opportunities increased,” said Golembiewski.

Registered Index-Linked Annuities
Registered index-linked annuity (RILA) set new quarterly and mid-year sales records. In the second quarter of 2025, RILA sales were $19.1 billion, 15% higher than the prior year. In the first half of 2025, RILA sales jumped 18% year over year to $36.7 billion.

“RILA’s value proposition — protected growth with attractive caps and participation rates — is very appealing in the current economic environment,” noted Golembiewski, “With three new RILA market entrants and several new products introduced in 2025 to date, LIMRA expects the growth trajectory for RILA to continue for the foreseeable future, especially as more broker dealers add RILAs into their product mix.”

Traditional Variable Annuities
Significant market volatility in April pulled down traditional variable annuity sales in the second quarter. VA sales fell 3% to $14.9 billion year over year. YTD, traditional VA sales were $30.2 billion, 4% over the prior year’s results.

Income Annuities
Single premium immediate annuity (SPIA) sales increased 6% year over year to $3.6 billion in the second quarter. In the first six months of the year, SPIA sales fell 5% to $6.6 billion. Deferred income annuity (DIA) sales fell 7% to $1.2 billion in the second quarter. YTD, DIA sales were $2.1 billion, down 14% from prior year.

“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,” said Hodgens. “In that same timeframe, our research shows greater interest in annuities by both advisors and investors. The Alliance for Lifetime Income by LIMRA will focus its attention to drawing attention to the annuities’ unique value proposition and the peace of mind annuity ownership provides.”

For more details on the sales results, visit: Annuity Sales Estimates (Second Quarter 2025) in LIMRA’s Fact Tank.

• To view the top 20 rankings of total, variable and fixed annuity writers, see U.S. Individual Annuity Sales (Second Quarter 2025 Results).
• To view the top 20 rankings of traditional VA and RILA sales leaders, visit U.S. Individual Variable Annuity Sales (Second Quarter 2025 VA Breakout Results).
• For the top 20 rankings of fixed-rate deferred, fixed indexed and payout annuity writers, visit U.S. Individual Fixed Annuity Sales (Second Quarter 2025 Fixed Breakout Results).

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