Posted 2/12/2024, 6:20:56 PM
Annuity Sales Hit Record $385 Billion in 2022, Driven by Rising Rates and Retiring Baby Boomers
- Annuity sales reached a record $385B in 2022, up 23% from 2021, driven by rising interest rates and retirees
- Insurers are buying bonds, especially corporate debt and mortgage bonds, to fund annuity payouts
- Annuity demand is keeping valuations for corporate bonds and commercial mortgage-backed securities high
- Fixed-rate deferred annuities had record sales of $164.9B in 2022, up 46% from 2021
- Annuity sales could total $693B over the next 2 years; still strong in 2023 despite potential Fed rate cuts