Challenger aiming for top spot
Annuities specialist Challenger Limited has set itself a target which will make it the highest-selling annuity provider in the Australian wealth management market.
The company announced this week it had targeted $240 million in lifetime annuity sales for the 2013 financial year — a result that would also be greater than total industry lifetime annuity sales in any year since 2004.
Commenting on the target, Challenger chief executive Brian Benari said the company was pleased with the market's acceptance of its Liquid Lifetime and Care Annuities, both of which provide investors with access to their capital, unlike traditional lifetime annuities.
"Removal of this sticking point has allowed annuities' merits to shine through — capital protection and the payment of known, guaranteed monthly income for life," he said.
Benari said favourable demographics in the form of the ‘greying' Australian population was driving a 20-year growth cycle in specialist retirement investments like lifetime annuities.
"Structural demand drivers have kept us committed to developing the lifetime annuity market in Australia," he said.
"There's clearly room for wealth managers willing to invest shareholder capital to protect customers from the risks of retirement."
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