Record equity markets and continued demand for principal protection drove US annuity sales to an all-time quarterly high.

Total US annuity sales rose four percent year-on-year to a record US$123.9bn in the second quarter of 2026, marking the 11th consecutive quarter in which sales exceeded US$100bn, according to Limra's latest US Individual Annuity Sales Survey.

Global tensions, market volatility and rising interest rates drove demand that lifted all major products - Bryan Hodgens

First-half sales reached a record US$231.3bn, up two percent from the same period in 2025.

Bryan Hodgens (pictured), senior vice president and head of Limra Research, attributed the record performance to a combination of market and macroeconomic factors.

‘Global tensions, market volatility and rising interest rates drove demand that lifted all major products and pushed the total market to a new high,’ he said.

Registered index-linked annuity (Rilas) remained the fastest-growing major annuity segment. Quarterly sales climbed 22% year-on-year and 11% quarter-on-quarter to a record US$23.3 billion, while first-half sales increased 21% to US$44.4 billion.

According to Limra, June was the second-strongest month on record for Rila sales as insurers continued to expand distribution and prioritise the product line.

‘With equity markets reaching new highs in June, investors were drawn to Rila's blend of upside participation and downside protection,’ said Keith Golembiewski, assistant vice president and head of Limra Annuity Research.

Fixed indexed annuity (FIA) sales totalled US$30.7bn in the second quarter, up 14% from the previous quarter but down seven percent compared with Q2 2025. First-half FIA sales fell five percent year-on-year to US$57.5bn despite improving cap rates during the quarter, which helped support sequential growth.

Traditional variable annuity sales rose 25% year-on-year to US$17.9 billion, benefiting from record equity market performance during June. Year-to-date sales reached US$35.1bn, up 21% from the first half of last year.

Fixed-rate deferred (FRD) annuities generated US$44.7bn in second-quarter sales, an increase of 26% from the previous quarter, although volumes were two percent below the same period in 2025. Through the first six months of the year, FRD sales declined seven percent year-on-year to US$80.3 billion.

‘As crediting rates climbed across every duration, demand for fixed-rate deferred products accelerated,’ Golembiewski said. ‘Investors seeking principal protection pushed FRD sales sharply higher from the first quarter.’

Income annuities also continued to gain momentum. Single premium immediate annuity (SPIA) sales reached a record US$4bn during the quarter, up 12% year-on-year, while deferred income annuity (DIA) sales increased five percent to US$1.3 billion.

Limra said higher interest rates and demographic trends, including a growing number of Americans approaching retirement, are expected to continue supporting demand for guaranteed income products in the coming quarters.

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