For the year, FIA sales were $73.5 billion, up 6% from 2018 results. This surpasses the sales record for FIA sales set in 2018.
In the fourth quarter, FIA sales were $16.9 billion, down 13% from prior year’s results. SRI researchers point to low interest rates and increased interest in registered index-linked annuities, which offer a similar value proposition.
Fee-based indexed annuity sales continue to fall. In the fourth quarter, fee-based FIA sales were $140 million, down 17% from prior year. Fee-based products represent less than 1% of the total FIA market.
Fixed-rate deferred annuity sales were also aided by a strong first half of the year, after dropping 29% in the fourth quarter to $9.4 billion. At year's end, fixed-rate deferred annuity sales totaled $47.5 billion, up 4% from last year. This is the highest level of fixed rate deferred sales since the financial crisis
Fourth quarter single premium income annuity (SPIA) sales fell to $2.1 billion, 22% lower than prior year results. Despite the quarterly decline, SPIA sales beat the previous sales record set in 2018. SPIA sales were $9.9 billion in 2019, up 2% from 2018.
Deferred income annuity sales sunk 20% in the fourth quarter, to $527 million. For the year, DIA sales totaled $2.5 billion, up 8% from prior year.