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RILA sales drive new quarterly annuity sales record but monthly figures show potential signs of a softening market

WINDSOR, Conn., July 29, 2025—Total U.S. annuity sales were $223.0 billion in the first half of 2025, 3% above prior year results, according to preliminary results from LIMRA’s U.S. Individual Annuity Sales Survey, which represents 89% of the total U.S. annuity market. This tops the record set in the first half of 2024.  

In the second quarter, total annuity sales increased 5% year over year to $116.6 billion. This is the highest quarterly total ever recorded.

“For the third consecutive year, quarterly and year-to-date (YTD) annuity sales have set records. If you look underneath the top-level results, however, we see a slight softening in the market, which could result in a contraction in the second half of the year,” said Bryan Hodgens, senior vice president and head of LIMRA research. “Even accounting for the potential dip in sales in the second half of the year, annuity sales will likely surpass $400 billion in 2025.”

Registered Index-Linked Annuities
Registered index-linked annuity (RILA) set a new quarterly sales record. In the second quarter of 2025, RILA sales were $19.6 billion, 20% higher than the prior year. In the first half of 2025, RILA sales jumped 20% year over year to $37.0 billion.

“Elevated market volatility in the first quarter calmed in the second, and by the end of June, the markets registered positive growth,” noted Keith Golembiewski, assistant vice president and director of LIMRA Annuity Research. “RILA’s value proposition of protected growth with attractive caps and participation rates is very appealing in this environment. LIMRA expects the growth trajectory for RILA will continue for the foreseeable future, especially as more broker-dealers add RILAs into their product mix.”

Traditional Variable Annuities
Although traditional variable annuity sales fell 4% to $14.7 billion in the second quarter, the decline was largely due to April’s market volatility. YTD, traditional VA sales were $30.0 billion, a 3% gain year over year.

Fixed-Rate Deferred
Total fixed-rate deferred annuity (FRD) sales were $44.2 billion in the second quarter, 9% higher than second quarter 2024 sales. YTD, FRD annuity sales totaled $83.9 billion, level with prior year results.  

“Although FRD sales have rebounded from the sluggish start in the first quarter, monthly data suggests sales are sliding as interest rates stabilize and likely investors have already secured FRD contracts,” said Golembiewski. “Strong equity market growth has dampened new FRD sales. That said, FRD crediting rates, on average, continue to outperform CD rates, making them the most attractive, short-term solutions for risk-adverse investors."

Fixed Indexed Annuities
Fixed indexed annuity (FIA) sales totaled $31.4 billion in the second quarter, level with prior year results. Year-to-date (YTD), FIA sales were $59.2 billion, slipping 1% from the first half of 2024.

“FIA sales growth contracted slightly due to FRD cannibalization,” said Golembiewski. “Yet FIA’s value proposition remains very strong as clients and financial professionals look for guaranteed income and protected growth.”

Income Annuities
Single premium immediate annuity (SPIA) sales were $3.4 billion in the second quarter, level with prior year results. In the first six months of the year, SPIA sales dropped 8% to $6.5 billion. Deferred income annuity (DIA) sales dropped 7% to $1.2 billion in the second quarter. YTD, DIA sales were $2.1 billion, down 14% year over year from the record set in the first half of 2024.

“For the seventh consecutive quarter, U.S. annuity sales have topped $100 billion,” said Hodgens. “This ‘new normal’ in the U.S. annuity market is partially because of industry efforts to educate consumers and advisors about the value of including a guaranteed lifetime income stream into a retirement plan. But the work needs to continue. Today, just 1 in 5 pre-retirees* own an annuity, and nearly half say they won’t have enough guaranteed income to cover basic living expenses. With the Alliance for Lifetime Income coming under LIMRA’s umbrella, we will carry on the mission to help Americans understand the role annuities play in achieving financial security in retirement.”

Preliminary second quarter 2025 annuity industry estimates are based on monthly reporting. A summary of the results can be found in LIMRA’s Fact Tank.

The top 20 rankings of total, variable and fixed annuity carriers for the first half of 2025 will be available in late August, following the last of the earnings calls for the participating carriers.

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*Working adults ages 40-85 with at least $100,000 in household assets and within 10 years of their expected retirement.