Challenger annuity sales up 22 per cent

Challenger annuity sales up 22 per cent

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

 

 

Challenger annuity sales up 22 per cent
investordaily image
ID logo
promoted stories

Appointments

investordaily image

AMP names incoming chief risk officer

Jessica Yun

investordaily image

Antares Equities hires new director

Staff Reporter

Brad Fox

Former AFA CEO appointed to boutique board

Staff Reporter

Analysis

investordaily image

Warning lights flashing on Aussie equities

Roy Maslen

investordaily image

What’s in store for the economy in 2018?

Frank Uhlenbruch

ST Wong

Busting common passive investing myths

ST Wong