Annuity provider Challenger has benefited from its inclusion on superannuation industry platforms throughout 2016 to see sales rise by 22 per cent.
In the firm's annual results, posted on the ASX website yesterday, Challenger announced annuity sales of $3.4 billion in the past 12 months, up 22 per cent on the previous year.
Challenger signed a distribution deal with superannuation administration platform AAS in June 2015 and secured a place on Colonial First State's platforms in late 2014.
A distribution deal with industry fund Local Government Super was inked in July 2016, and Challenger said five more "annuity partnerships" will be launched in 2016-17.
Along with strong annuity sales, Challenger's 2015-16 result also saw the firm post a statutory profit of $328 million, up 10 per cent.
The fund manager has assets under management of $60 billion.
Challenger chief executive Brian Benari said annuity sales volume through the Colonial First State partnership had doubled in its first year.
Between 1 January 2016 and 30 June 2016, 40 per cent of sales from platforms were lifetime annuities, he said.
"We are launching five new annuity partnerships in 1H17 including teaming up with Suncorp to white-label Challenger term and lifetime annuities," Mr Benari said.
"The bottom line is that more retirees are buying Challenger annuities because they better understand retirement risk and seek guidance from advisers who rate us highly and can access our products much more easily from a growing range of platforms."
Read more:
RBA keeping Australian dollar on a tight leash
ANZ to raise $1 billion with new hybrid
MetLife wins CareSuper insurance contract
AMP Capital to liquidate China Growth Fund
New exchange-quoted managed fund launched
Australia has signed onto an international agreement that will aim to embed climate risk into investment decision-making, including through ...
The companies that offer the greatest risk for investors in 2021 are many of the same companies that have provided the greatest return to in...
With AMP set to announce its full-year results in February, the wealth giant is under pressure to announce that anybody other than Ares is i...