U.S. annuity sales reached a new quarterly high of $123.9 billion in the second quarter of 2026, a 4% increase from the same period a year earlier, according to preliminary data from LIMRA's U.S. Individual Annuity Sales Survey. The industry group reported that this marks the 11th consecutive quarter with sales above $100 billion, and first-half sales of $231.3 billion set a record for the period.
The surge comes at a time of heightened market uncertainty. At its late July policy meeting, the Federal Open Market Committee voted 9 to 3 to hold rates steady, but the three dissents—from Cleveland Fed President Beth Hammack, Minneapolis Fed President Neel Kashkari, and Dallas Fed President Lorie Logan—each favored an immediate 25-basis-point hike. This marks the first time since September 2016 that three FOMC members have dissented with a unified hawkish view, a development that moved fixed income markets more than the headline decision.
Geopolitical tensions also loom. The five-month-old conflict involving Iran continues to affect energy markets and inflation expectations. Treasury Secretary Scott Bessent told CNBC on Tuesday that a deal to reopen the Strait of Hormuz "is in sight," following President Trump's warning that the latest talks represent Iran's "last chance" to end the fighting. Bessent's comments helped reverse an earlier spike in oil prices that had followed renewed uncertainty over a diplomatic resolution.
"Total annuity sales set an all-time quarterly record, the 11th consecutive quarter above $100 billion," said Bryan Hodgens, senior vice president and head of LIMRA research. "A combination of global tensions, market volatility and rising interest rates drove demand that lifted all major products and pushed the total market to a new high."
RILAs lead the growth story
Registered index-linked annuities (RILAs) set a new quarterly record of $23.3 billion, up 11% from the first quarter and 22% higher than a year earlier. Year-to-date RILA sales totaled $44.4 billion, 21% above the same period in 2025. June was the second-highest sales month on record for the product, up 15% from May and more than 30% higher than a year earlier, as carriers continued to shift resources toward the category.
"RILA set another quarterly sales record as carriers continued to pivot toward these products and broaden their distribution," said Keith Golembiewski, assistant vice president and head of LIMRA Annuity Research. He noted that equity markets reaching new highs in June drew investors to a structure that blends upside participation with downside protection.
Fixed products see a sharp rebound
Fixed-rate deferred (FRD) annuity sales came in at $44.7 billion for the quarter, up 26% from the first quarter but down 2% from a year earlier. First-half FRD sales of $80.3 billion trailed last year's pace by 7%, though monthly sales rose roughly 15% both sequentially and year-over-year as crediting rates climbed across every duration.
"As crediting rates climbed across every duration, demand for fixed-rate deferred products accelerated," Golembiewski said, adding that investors seeking principal protection pushed sales sharply higher from the first quarter.
Fixed indexed annuity (FIA) sales rose to $30.7 billion, up 14% sequentially but 7% below the prior-year quarter, as average cap rates ran slightly below year-ago levels. Year-to-date FIA sales stood at $57.5 billion, down 5% from the first half of 2025. Rising cap rates during the quarter helped lift sales from the first-quarter trough, and monthly volume climbed more than 10% from the prior month while running roughly flat against a year earlier.
Variable annuities and income products also climb
Traditional variable annuity (VA) sales reached $17.9 billion, up 4% from the first quarter and 25% higher than the second quarter of 2025. First-half VA sales of $35.1 billion were 21% above the year-ago period. Record equity market performance in June supported results, even as volatility during the quarter tempered the pace of gains; June VA sales alone rose more than 10% from May and topped 30% growth from a year earlier.
Income annuities notched records of their own. Single premium immediate annuity (SPIA) sales hit $4.0 billion, up 12% from a year earlier and 9% from the first quarter. Deferred income annuity (DIA) sales reached $1.3 billion, up 5% year over year and 32% sequentially.
The strong annuity sales environment comes as advisors increasingly consider hybrid annuity-withdrawal strategies that combine guaranteed income with systematic withdrawals, a topic of growing interest in retirement planning. Meanwhile, the broader market backdrop remains uncertain, with AI infrastructure spending and other factors influencing investor sentiment.
