2016 Fixed Annuity Sales Break Record
February 22, 2017 by Cyril Tuohy
Fixed annuity sales soared 14 percent to a record $117.4 billion in 2016 as annuitants turned in billions of dollars’ worth of contracts following the expiration of a seven-year surrender period, LIMRA Secure Retirement Institute reported Tuesday.
Fixed-rate deferred annuity sales led the way with sales of $38.7 billion, an increase of 25 percent compared with 2015, LIMRA SRI also reported. Fixed annuities eclipsed the $100 billion in variable annuity sales estimated for the year.
“A large block of fixed-rate deferred annuities purchased in 2009 came due in the first half of the year, creating a significant amount of money in motion,” said Todd Giesing, assistant research director for LIMRA SRI.
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