By LIMRA – June 11, 2018
LIMRA is forecasting sunny weather for annuities. The company released its 3-year annuity sales forecast for 2018-2020: after six consecutive quarters of declines, annuity sales leveled off in Q4 2017 and Q1 2018. Improved economic/regulatory conditions prompted LIMRA to forecast a 5 to 10% increase in total annuity sales this year, and to improve up to 5% in 2019.
Based on uncertainty around the SEC best interest rule and expected market volatility, LIMRA expects total annuity sales to be flat in 2020, while still forecasting indexed annuities to increase each year through 2020.This year, indexed annuity sales are expected to rise close to $60 billion, increasing by 5-10%, which is near the record sales levels set in 2016. Expected rising interest rates and stronger guarantees are prompting LIMRA SRI to predict indexed annuity sales to improve another 5-10% in 2019. Then, in 2020, indexed annuity sales growth will slow, increasing just 5% as interest rates decline.
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