Annuity sales grew 46 per cent on the prior corresponding period, supported by a 21 per cent growth in term annuities, and a record 208 per cent increase in lifetime annuity sales.
“The superannuation industry continues to move ahead of the retirement income regulatory reform agenda to meet client needs by implementing comprehensive retirement income solutions,” commented Challenger chief executive Brian Benari.
Mr Benari said the growth in lifetime annuity sales owed to retirees looking to protect against longevity risk and supplement their age pension.
“Financial advisers are implementing income layering and retirement income model portfolios to meet the needs of these retirees.
“This is reflected in our record quarter of lifetime annuity sales, which accounted for 29 per cent of total annuity sales, compared with 20 per cent in the quarter to 30 June 2016 and 14 per cent in the prior corresponding period,” he said.
Challenger Life, the division of Challenger responsible for annuity products, saw net book growth of $334 million or 3.1 per cent during the quarter, and Challenger Funds Management, responsible for Fidante Partners and Challenger Investment Partners, increased its funds under management to $2.2 billion.
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