Total new annualized life insurance premium in the U.S. insurance market rose 8% to $3.9 bn in Q3 2024, and policy count increased by 3%, according to LIMRA.
Total annuity insurance sales in the U.S. reached $114.6 bn in the third quarter of 2024, marking a 29% year-over-year increase. This represents the 16th straight quarter of growth, just below the record set in Q4 2023.
Strong economic conditions and demand for guaranteed retirement income continue to drive robust annuity sales.
Even with the potential for further rate cuts, LIMRA expects fixed annuity products to surpass previous sales, setting new records in 2024. In the first three quarters of 2024, total annuity sales rose 23%, totaling $331.2 bn (see U.S. Life Insurers Positioned for Lower Interest Rates).
New premium reached $11.6 bn, up 2% compared to last year. The policy count also climbed 1% over the first nine months of 2024, LIMRA reported in its preliminary survey.
All product lines, except whole life, saw sales growth. Variable universal life (VUL) experienced a significant rise. Assuming a stable economy, we expect solid sales through year-end, likely marking the fourth consecutive year of record premiums
John Carroll, senior vice president and head of Life & Annuities, LIMRA and LOMA
6 out of 10 insurers recorded growth for the quarter. VUL new premium totaled $665 mn in Q3, a 41% increase from 2023. Policy sales increased 4%. Year-to-date, VUL new premium jumped 16% to $1.6 bn, with policy count up 4%.
In Q3, VUL accounted for 17% of the total U.S. individual life insurance market.
Indexed universal life (IUL) premium reached $897 mn in Q3, up 4% from last year. Growth was attributed to expanded distribution, product innovation, and higher demand. Policy count rose 9% (see Top 20 Life Insurers by Premium).
While a few large carriers drove most of the VUL growth, half of the VUL carriers saw gains. Strong equity markets boosted VUL product appeal, especially accumulation-focused offerings
Karen Terry, assistant vice president and head of LIMRA insurance product research
IUL premium increased 2% to $2.7 bn over the first nine months, with an 11% rise in policy count. IUL made up 23% of the U.S. market in Q3.
Fixed universal life (UL) premium climbed 13% to $266 mn in Q3, marking its fifth consecutive quarter of growth, though policy sales fell 9%. Year-to-date, fixed UL premium of $798 mn grew 9%, but policy count dropped 7%.
Total annuity sales surged 29% in Q3, hitting $114.6 bn, just short of the record set in Q4 2023. This marked the 16th straight quarter of growth for the U.S. market.
