IRI: Variable Annuity Sales in Q2 at 'Record High'

"Although rates were falling, the spread between Treasury and corporate bond yields widened," Alexander explained in a press release. "This enabled fixed annuities to offer competitive credit rates. In addition, buyers apparently got tired of waiting for rates to rise."

Investors who wished to avoid being locked into low rates turned to indexed annuities, Alexander said, which had the further benefit of offering "upside potential, downside protection and attractive guaranteed lifetime income."

IRI President and CEO Cathy Weatherford called the annuity industry "strong," citing expansion in variable, indexed and income annuities as evidence. While Weatherford acknowledged fluctuations in sales should be expected as investors re-examine their portfolios, she expressed confidence in the industry's ability to meet their needs.

"The diversity and innovation found throughout the insured retirement industry uniquely allows consumers to identify and invest in strategies that best suit their individual needs," Weatherford said in a press release. "The movement and growth within this sales data underscores that unique flexibility investors have – and now demand – in securing their financial future."