2025: A record-breaking year for annuity sales via banks and BDs

In 2025, favorable economic conditions, along with aging demographics and more advisors selling annuities, led to record-breaking individual annuity sales in 2025. Banks and broker-dealers did especially well, a new survey finds.

Higher interest rates allowed insurance companies to offer attractive crediting rates on accumulation products and payout rates on guaranteed income products, a major factor in sales.

According to Saltzman Associates’ inaugural annuity market year in review, which looked at institutional distribution, nearly all product lines experienced growth, with registered index-linked annuities seeing the largest growth rate in 2025 at 17%.

LIMRA’s Retail Annuity Sales Survey, which represents 92% of the U.S. market, shows total U.S. annuity sales marked a new record in 2025 – increasing 6% to $461.3 billion. LIMRA data reveals that RILA sales also set new annual sales records in 2025, increasing 20% year over year to $79.6 billion.

The Salzman report is based on data from 32 banks and broker-dealers, representing nearly $90 billion in annuity premium in 2025. This review focuses on annuity distribution channels across banks, independent broker-dealers, regional and national broker-dealers, as well as wirehouses.

The bank channel

With the favorable interest rate environment in 2025, fixed-rate deferred annuities continued to make up an overwhelming majority of bank annuity sales.

“Bank customers tend to be more conservative. With an average guaranteed return rate of just under 5% on three-to-five-year duration FRDs continue to be attractive to these consumers,” said Todd Giesing, vice president with Saltzman Associates and author of the report. LIMRA data show FRD sales improving 5% year over year to $160.6 billion.

Fixed indexed annuities did not fare as well in 2025. Given the strong risk-free rates in fixed-rate deferred products, it appears bank advisors and investors favored fixed-rate guarantees over the higher earning potential of FIA products. FIA sales in banks declined 2% in 2025.

Overall, FIA sales, according to LIMRA, were $128.2 billion in 2025, 1% higher than 2024 results.

The banks saw an increase in both traditional variable annuity and RILA sales. Traditional VA sales increased 19%, while RILA sales increased 33%. Registered annuity product sales, however, are still a small portion of banks’ overall annuity production, with both product lines only accounting for 13% of overall annuity sales.

Independent BDs record big sales

Of all the annuity channels, independent BDs have the largest menu of annuity products. Annuity sales in this channel skew more heavily to registered products, and 2025 results did not depart from that trend. Only one-quarter of the channel’s 2025 sales were in non-registered fixed products, with the remainder in traditional VA and RILA products.

Notably, over half of total annuity sales in this channel went to RILA products in 2025. RILA sales increased 10% in 2025 as the balance of growth potential and downside protection continues to resonate with advisors and investors. Traditional VA products continued to rise with sales increasing 5% for 2025.

“Frankly, I thought RILA sales would plateau at some point, but they continue to grow. This product is now a teenager, marking its 16th year in the market, yet we are still seeing more carriers entering the market and product sales continuing to climb,” Giesing said.

Fixed annuity sellers saw mixed results in the independent channel. Despite continued attractive crediting rates, FIA sales were down 7% in 2025.

Income annuities sales were down 34%, with other flexible income solutions, such as guaranteed living benefits on other product chassis, being more attractive as a solution for guaranteed income.

Regional/national BDs show mixed results

FIA sales saw a slight slowdown in this channel in 2025, likely as RILA popularity and value proposition outweighed FIA’s principal protection feature. Sales of FIA products in this channel were down 3% compared to 2024.

“Similar to other channels, income annuities experienced challenges in 2025. Sales were down nearly a third from 2024, as the focus on guaranteed income took a back seat to protection and flexibility.” Giesing said.

RILA sales continued to shine in this channel, with sales experiencing the largest percentage increase of any product type. Traditional variable annuity sales saw modest growth in 2025, increasing 3%. In 2025, just over one-fifth of sales in this channel were traditional VA products.

Wirehouse sales grow faster

When compared to other channels, wirehouses had a more balanced sales mix across annuity product types. Sales in the wirehouse channel experienced the highest growth among all channels, with total sales increasing by 18% in 2025.

Consistent with the other channels, RILA sales experienced the highest growth rate. While wirehouses also have competing alternative products to RILAs (such as structured notes) sales of RILAs increased 37% in 2025.

Traditional VA sales remain a staple for this channel, accounting for a 30% market share in 2025. With strong equity market performance in 2025, sales increased 28%.

FRDs saw modest growth at wirehouses in 2025, as attractive crediting rates during the year were an alternative to other fixed-income options available. Sales of FRD products accounted for a third of annuity sales in this channel. Wirehouse FIA sales also increased during 2025, making it the only institutional channel seeing growth in this category. Sales were up an impressive 17%, likely as higher interest rates supported strong guaranteed income solutions in this product line.

Income annuities were challenged in this channel as sales declined 10% in 2025.

Continued growth projected for 2026

Looking ahead to the coming year, Giesing said economic factors are the biggest drivers in annuity sales. “Over the last several years, we’ve seen a favorable environment with elevated interest rates leading to strong returns without much downside risk.”

“If we see declining interest rates or volatility in the equity markets, this likely will negatively impact annuity sales,” he said.

The “money in motion” phenomenon is another major influence on the individual annuity market. Over the past five years, more than $600 billion has been sold in fixed-rate deferred annuities across the industry.

Many of these products have terms of five years or less, meaning that both advisors and investors will need to consider future solutions as contracts mature.

“While some of this money is expected to move into non-annuity investment options, much of it—particularly from nonqualified fixed-rate deferred annuities sold in recent years—will likely shift to new annuity products to retain tax-deferred benefits,” Giesing notes.

“We expect the momentum in the institutional annuity markets to persist throughout 2026. I think 2026 could be another record-breaking year for annuities,” Giesing said.

© Entire contents copyright 2026 by InsuranceNewsNet.com Inc. All rights reserved. No part of this article may be reprinted without the expressed written consent from InsuranceNewsNet.com.

The post 2025: A record-breaking year for annuity sales via banks and BDs appeared first on Insurance News | InsuranceNewsNet.