Annuities specialist Challenger Financial Services has claimed the ageing population is on its side as it reported a modest increase in net profit after tax, recording just a 6 per cent lift to $233 million for the year ended 30 June.
Commenting on the result, Challenger chief executive Dominic Stevens said new distribution and marketing initiatives put in place during the year had helped retail sales of guaranteed product rise 82 per cent to $933 million.
“We believe the life business will continue to benefit from a structural increase in demand for guaranteed, fixed rate products such as annuities and are committed to driving growth in this product category, targeting 20 per cent retail sales growth and 5 per cent net retail book growth for 2011,” he said.
“An ageing population is on our side, as the emerging realisation that share market volatility has delivered a lot of pain for little gain, even over the longer term,” Stevens said.
