Challenger’s annuity sales surge 208% in Sep quarter

Company News

by David Chau

Challenger Ltd (ASX:CGF) has announced some positive September quarter results.  Its total group assets and funds under management in the quarter were $62 billion, which is a 3% increase over the same period last year.

The company also reported its annuity sales went up 46% to $1.03 billion, including record lifetime annuity sales, which surged by 208%. In addition, the company says it experienced 21% growth in term annuities.

Challenger says sales growth came from its investment administration platforms. This was due to its expanded distribution relationships, and from broad-based off-platform sales via financial advisers.

As for the 2017 financial year outlook, the company says earnings guidance for its Challenger Life business remains unchanged – between $620 million and $640 million.

Challenger posted a net profit of $330 million at 30 June 2016.

David Chau

Finance News Network
David joined FNN in April 2016. In addition to presenting the Market Outlook and latest business news stories, David interviews senior economists and CEOs of ASX-listed companies. Prior to working for FNN, David was a litigation lawyer.