Australian Unity will expand its product offering with the announcement that it will enter the annuities market for the first time.
The financial services group will offer immediate annuities through a deal with Challenger Life which will see the latter’s annuities products rebadged for use by Australian Unity.
Financial services general manager Craig Dunstan, says current and future investors with the group would benefit significantly from the availability of the high performing annuities.
“Given our aging population, income stream products are generating strong and continuing interest,” Dunstan says.
“As such the annuities from with a capital guarantee and income stream and without fees will be welcomed by those holding maturing investment bonds, and those looking for the best income stream products available in the market”
Dunstan says Australian Unity had been steadily increasing its presence in the retirement market in recent years, particularly through its Freedom of Choice Masterfund, which combines personal and corporate superannuation together with an allocated pension.
He also says the group’s eligible rollover fund had funds under management showing a growth rate of almost 30 per cent a year.
The group plans to market the annuities through its 50 sales centres and agencies in Melbourne and regional Victoria.
