LIMRA: Final Q2 Annuity Sales Lower Than Expected

While annuity sales for the second quarter of 2026 still showed ongoing adoption, they fell short of initial LIMRA estimates. According to the organization’s U.S. Individual Annuity Sales Survey, which represented 93% of the total U.S. annuity market, sales reached $121.2 billion in the second quarter.

Compared with preliminary data released last month, which represented 84% of the total U.S. annuity market, sales decreased by $2.7 billion, from $123.9 billion.

According to data released on Tuesday, year-to-date total annuity sales stood at $228.7 billion at the end of the quarter, less than the expected total of $231.3 billion. However, adoption of annuities remains steady, with sales still rising 2% year-over-year, marking the 11th consecutive quarter with at least $100 billion in sales.

“A combination of global tensions, record equity market performance and rising interest rates continued to drive demand, lifting every major product line from the first quarter,” said Bryan Hodgens, LIMRA’s head of research, in a statement.

Among specific annuities, registered index-linked annuity sales matched their projections from last month. At $23.3 billion for sales in the second quarter, sales rose by 11% from the first quarter of the year. Through the first half of the year, RILA sales totaled $44.4 billion, up 21% from the first half of 2025.

“Investors remain eager to participate in market growth but are wary of a downturn, and RILAs’ blend of upside potential and built-in protection speaks directly to that mindset,” said Keith Golembiewski, LIMRA’s head of annuity research, in a statement.

Fixed indexed annuity sales were valued at $30.6 billion, down slightly from sales projections of $30.7 billion. Year-to-date sales were $57.4 billion.

Traditional variable annuity sales were also slightly off from projections, with sales reaching $17.7 billion, down from the estimate of $17.9 billion, and year-to-date sales reaching $34.9 billion.

While RILAs met their sales projections, fixed-rate deferred annuity sales in the second quarter differed by $2.9 billion last month, reaching $41.8 billion, down from an estimate of $44.7 billion. First-half sales totaled $77.4 billion, 10% lower than the same period last year and lower than the estimated of $80.3 billion last month.

“As crediting rates climbed throughout the second quarter, demand for fixed-rate deferred annuities increased,” said Golembiewski. “However, as volatility subsided, so did the flight to safety, and the demand for these products waned.”