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Life Health > Annuities

RILAs Are Not the Only Annuities With Sizzle

By Allison Bell

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Registered index-linked annuity sales are climbing — and so are sales of the RILA’s older siblings, non-variable indexed annuities.

Sales of non-variable indexed annuities climbed 29% between the first quarter of 2023 and the first quarter of 2024, to $29 billion, according to new issuer survey data from Wink.

“Continued attractive rates benefited the product line,” Wink says in a comment on the data. “It is projected that indexed annuity records will set records again in 2024.”

What it means: Relatively high interest, the aging of the baby boomers and lingering investor concerns about market volatility continue to push individual annuity sales higher.

Non-variable products vs. variable products: Sales of all types of U.S. individual annuities that Wink has been tracking for at least a year increased 18%, to $100 billion.

Sales of all types of deferred variable annuities increased 24%, to $27 billion, and sales of all types of deferred non-variable annuities rose 19%, to $74 billion.

Indexed annuities: Non-variable indexed annuities have crediting rates tied to the performance of investment indexes but protect the holder’s principal and are regulated as insurance products.

RILAs are similar but can expose the holder to the risk of loss of principal and are regulated as securities.

RILA sales increased 44% in the first quarter, to $14 billion. But sales of non-variable indexed annuities were still more than twice as high as RILA sales.

The details: Here are the Wink survey results by product type, reflecting changes between the first quarter of 2023 and the latest:

  • RILAs: $14 billion (Up 44%)
  • Traditional fixed annuities: $547 million (Up 43%)
  • Non-variable Indexed annuities: $29 billion (Up 29%)
  • Multi-year guaranteed annuities: $44 billion (Up 9.7%)
  • Traditional variable annuities: $13 billion (Up 8.1%)

Credit: Shutterstock

Allison Bell

Think_Allison

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