Annuity sales soared 17% in the fourth quarter, reaching $61.9 billion. It was the largest quarterly percentage increase in 11 years, according to LIMRA Secure Retirement Institute.
Overall for 2013, annuity sales were $230.1 billion, a 5% increase over 2012.
Indexed annuity sales set a new quarterly record of $11.9 billion, an increase of $1.7 billion from the third quarter. For 2013, indexed annuity sales totaled $39.3 billion, up 16% over 2012.
Other significant increases:
- Overall fixed annuity sales reached $25.6 billion in the fourth quarter of 2013. It was the highest sales total since the second quarter of 2009, up 45% over the fourth quarter of 2012. Total fixed annuities sales grew 17% in 2013, to $84.8 billion.
- Fixed-rate annuity sales earned $8.5 billion in the fourth quarter. For the year, fixed-rate annuities grew 19% to $29.3 billion.
- Variable annuity sales grew 4% in the fourth quarter, to $36.3 billion.
- Deferred income annuity sales reached $710 million in the fourth quarter, up 82% from the fourth quarter of 2012. In 2013, DIA sales reached $2.2 billion, more than double (113%) 2012 results.
LIMRA attributed the overall growth to improved interest rates, product innovation and organic growth in the banking and broker-dealer channels.
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