Challenger logs another strong quarter of annuity sales
Challenger's growth in life annuity sales continues with the company announcing a 31 per cent increase from the previous quarter.
In what Challenger chief executive Brian Benari has called "unseasonably strong retail annuity sales", the company said life annuity sales for the September quarter totalled $732 million.
"Sales from our new lifetime products, Liquid Lifetime and Care Annuity, have accelerated," Benari said.
"Lifetime sales for the quarter were $119 million or approximately half the sales achieved for the entire 2013 year."
That is a 271 per cent rise on the previous corresponding year and comprises 17 per cent of total sales, compared to 7 per cent 12 months ago, the company said.
Strong growth in both fixed term and lifetime annuities have driven up retail annuity sales, which shot up by 48 per cent at $714 million.
Total assets and funds under management rose by 31 per cent, at $46.1 billion, up 3 per cent for the quarter.
Total funds management FUM stands at $42.7 billion. Quarterly FUM growth was partly offset by net outflows of $193 million, the company said.
The company's life cash operating earnings guidance for the 2014 financial year stands between $465 million and $475 million.
The company's Rainmaker ranking has moved up from ninth to seventh-largest Australian investment manager, Benari said.
"We are benefiting from our contemporary model and the leverage this business provides."
Recommended for you
In this episode of Relative Return, host Maja Garaca Djurdjevic is joined by shadow treasurer Angus Taylor to discuss the current state of the financial advice sector, the economy, the housing affordability crisis and more.
In this episode of Relative Return, host Laura Dew speaks with Andrew Mitchell, director and senior portfolio manager at Ophir Asset Management, about why he loves working in fund management and the lessons he’s learnt in a decade of running a firm.
In this episode of Relative Return, host Laura Dew speaks with Blackwattle Investment Partners managing director and chief investment officer, Michael Skinner, about setting up an asset manager and what he looks for in an investment team.
In this special episode of Relative Return, Momentum Media’s Phil Tarrant and Jordan Coleman discuss the publishing house’s expansion into greater coverage of the wealth management space.