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Super helps drive solid Challenger quarter
Challenger Limited is continuing to look to the superannuation sector for growth in its annuities business.
The company today released its September quarter update to the Australian Securities Exchange revealing a three per cent increase in group assets and funds under management to $62 billion.
At the same time, Challenger chief executive, Brian Benari pointed to the importance of the superannuation sector to the company's overall strategy.
"We continue to experience strong demand for our products and have achieved back-to-back quarterly annuities sales in excess of $1 billion," he said.
"Sales growth is coming via investment administration platforms, due to our expanded distribution relationships, and from broad-based off platform sales via financial advisers."
"The superannuation industry continues to move ahead of the retirement income regulatory reform agenda to meet client needs by implementing comprehensive retirement income solutions," Benari said.
"Retirees are increasingly seeking longevity protection in the form of annuities to supplement the Age Pension."
He said financial advisers were also implementing income layering and retirement income model portfolios to meet the needs of the retirees.
Benari said this was reflected in Challenger's record quarter of lifetime annuities sales, which accounted for 29 per cent of total annuity sales, compared to 20 per cent in the quarter to 30 June, 2016.
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