US annuity sales totaled $106.3 billion in the first quarter of 2025, according to LIMRA’s US Individual Annuity Sales Survey.
The figure matches the record set in the first quarter of 2024 and marks the sixth consecutive quarter that total annuity sales have exceeded $100 billion. The quarterly survey covers approximately 85% of the US annuity market.
“Total annuity sales topped $100 billion for the sixth straight quarter, demonstrating the growing interest in principal protection and guaranteed income continues,” said Bryan Hodgens, senior vice president and head of LIMRA research. He added that awareness of annuities remains limited among both consumers and financial professionals. LIMRA and LOMA recently announced that the Alliance for Lifetime Income would be integrated into their operations to support broader outreach across market participants and audiences.
Sales of registered index-linked annuities (RILAs) rose 20% year over year to $17.4 billion in the first quarter. LIMRA noted that three-quarters of the top 20 RILA providers reported increases.
“We continue to see new companies enter the RILA market, driving product innovation and expanding distribution,” said Keith Golembiewski, assistant vice president and annuity research director at LIMRA. RILAs and fixed indexed annuities (FIAs) combined represented 42% of total annuity sales for the quarter, compared to less than 30% a decade earlier.
Traditional variable annuity (VA) sales reached $15.3 billion, up 12% from the first quarter of 2024. The segment has now recorded five consecutive quarters of year-over-year growth. According to LIMRA, 90% of the top 20 VA carriers and about two-thirds of all carriers in the segment reported gains. Fee-based VA sales rose 21% over the same period, a trend LIMRA attributed in part to broader adoption within the registered investment advisor channel.
Fixed-rate deferred (FRD) annuity sales totaled $39.7 billion, up 36% from the prior quarter but down 8% year over year. Despite the annual decline, FRD products accounted for nearly 38% of total annuity sales during the quarter. Golembiewski noted that volatility in March contributed to an uptick in demand, as some investors sought predictable returns amid market uncertainty. Average crediting rates for three-year FRD products remained roughly 200 basis points higher than comparable certificate of deposit (CD) rates.
Fixed indexed annuity sales declined 3% from the previous year to $27.8 billion, though more than half of the top 20 carriers reported gains.
Sales of income annuities decreased across both immediate and deferred segments. Single premium immediate annuity (SPIA) sales were $3 billion, down 16% from a year earlier. Deferred income annuities (DIAs) generated $900 million in sales, a 22% decline.
“As we commemorate June as Annuity Awareness Month, it’s a good time to highlight the crucial role that annuities can play in securing Americans’ retirement future,” said Hodgens. LIMRA research found that among pre-retirees without annuities, only 44% expect income from guaranteed sources such as Social Security or pensions to cover their basic expenses. Hodgens said this points to a gap in awareness and understanding of how annuities function as part of retirement income planning.
