Institutional Distributor Annuity Market Summary Q2 2026
- Todd Giesing
- Aug 6
- 5 min read
A 2% Dip Masks a Major Shift in Product Mix
Typically, the second quarter is one of the strongest quarters for individual annuity sales. Strong equity market performance was the fuel in June for Saltzman Associates Composite Group. Despite the lift from registered products, overall annuity sales dipped 2 percent in the quarter.
Equity markets soared in the second quarter, with the S&P 500 returning over 10 percent. Combined with continued attractive interest rates, this was the catalyst for strong Traditional VA & Registered Index-Linked Annuity (RILA) sales in the second quarter. This continued the pattern experienced in the first quarter of sales trending towards registered products and away from fixed annuity solutions.
While fixed annuity sales have been the catalyst for growth over the past few years, sales of fixed-rate deferred annuities were on the decline in the second quarter. This is despite the fact that crediting rates have remained fairly stable during the quarter. Interest rates on competitive offerings are still in excess of 5 percent. This decline is an indication that investors’ sentiment is on the rise as flows continue to products with greater growth potential.
As the aging demographics in the U.S. continue to favor annuity product features, it would also be expected that an aging population is seeking solutions with guaranteed lifetime income. Income riders offered within Trad. VA, FIA, & RILA products are likely lifting the tide in individual annuity sales.
RILA sales continued their long-term pattern of increasing sales. Sales rose nearly 25 percent in the second quarter, and RILA sales now account for one-fourth of the Composite Groups' overall annuity sales. Banks had the highest growth rate of RILA sales with over 50 percent for the quarter.
Traditional VA sales continued to ramp up in the second quarter. Sales increased 26 percent in the second quarter alone. Continued strong interest rates are helping the attractiveness of guaranteed living benefits, likely driving up second quarter sales. As equity market returns continue to remain attractive, the Traditional VA market share has increased 3 percentage points from last year.
Fixed indexed annuity sales were on the rise in the second quarter. Sales increased 4 percent from last year, with the largest gains being in the Bank channel. The attractiveness of both Cap/Participation rates, combined with highly competitive income guarantees, has pushed year-to-date sales up 7 percent.
Income annuity sales continued to be challenged in the second quarter.. The interesting storyline is the increase in sales in the Banks, with income annuity sales were up 85 percent in June alone, while all other channels experienced double-digit declines. This is another indication that the large blocks of fixed-rate deferred annuities sold in the bank channel over the past 5 years are likely being reallocated.
Even with interest rates rising in the second quarter, fixed annuity sales were on the decline. Fixed-rate deferred sales dipped 12 percent, a signal that investors want to take advantage of higher growth potential products. This trend was evident across all distribution channels, reducing the market share of overall Composite Group sales by 9 percentage points.
About the Data
The data used for this summary comes from the Saltzman Associates Institutional Distributor Annuity Sales Report.
Our Institutional Distributor Annuity Sales Report is a benchmarking tool that allows subscribers to quickly follow changes and trends in the sales mix of annuities across individual firms within participating Wirehouses, National and Regional Broker Dealers, Independent Broker Dealers, Bank and Credit Union Broker Dealers, and Third-Party investment programs serving smaller financial institutions.
The Composite Group in our annuity benchmarking program covers a subset of 32 bank and broker-dealer (BD) firms within the institutional distribution channel. These firms contribute their sales data across product and compensation types and receive a consolidated sales benchmarking report each month.
Each report allows the subscriber to see changes and trends across a variety of views, including:
Written commentary summarizing the high-level trends across the Composite Group's results for the period and year-to-date.
Monthly, quarterly, and year-to-date annuity sales growth at the product type, channel, and firm level.
Various metrics, including product mix, growth rates, and annuity compensation type (advisory or brokerage).
Fifteen-month sales history by product class and type for the Composite Group, channels, and individual firms.
Users can sort and filter results by firm, channel, product type, and compensation type to tailor the data presented.
To learn more about our Institutional Distributor Annuity Sales Report, please visit https://www.saltzmanassociates.com/research.
About Us
About Saltzman Associates
Saltzman Associates is a strategic marketing consultancy providing consulting services and
solutions to institutional distributors and underwriters of investment and insurance
products.
We work with banks, credit unions, broker-dealers, RIAs, investment banks, insurance
companies and related financial services companies to provide services including market
intelligence, business development, marketing, and product development. Whether the
need is information-based consulting, due diligence, or identifying new opportunities, we
can help you identify the most profitable strategies, resources, and programs.
About Todd Giesing
As Vice President at Saltzman Associates, Giesing focuses on business development,
partnerships, and strategic growth initiatives for the firm. Giesing also serves as a co-moderator and content creator for the very popular series of Saltzman Associates
Roundtables. Todd will provide consulting services, oversee the firm’s annuity
benchmarking studies, and lead various research projects.
As a respected thought leader in the industry, Todd has overseen U.S. and Canadian annuity
benchmarking programs, U.S. and Canadian annuity forecasting programs, and numerous
annuity-related research projects. Todd has also been a frequent speaker at industry
events. An accounting graduate of Eastern Connecticut State University, Giesing has also
served as a financial advisor and annuity wholesaler.
About the Institutional Distributor Annuity Sales Report
The Saltzman Associates Institutional Distributor Annuity Sales Report is a benchmarking
tool that allows subscribers to quickly follow changes and trends in sales mix of annuities
across individual firms within participating Wirehouses, National and Regional Broker
Dealers, Independent Broker Dealers, Bank and Credit Union Broker Dealers, and Third-
Party investment programs serving smaller financial institutions.
Learn More at https://www.saltzmanassociates.com/research.
Important Information
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