Challenger annuities generate $496 million in Q3

Challenger Life annuity sales have risen by 29 per cent from the previous corresponding quarter up to $496 million, partly off the back of interest from financial advisers.

Retail annuity sales also recorded strong growth generating $478 million, up 35 per cent from the same quarter last year.

Liquid lifetime and care annuity (lifetime) sales for the quarter doubled from the previous corresponding quarter, jumping to $143 million. 

Challenger general manager of platforms and key accounts Rommel Hacopian said advisers have played a critical role in the growth of its annuity sales given that it has no distribution ties.

Mr Hacopian said education and the relevancy of its solutions has consequently been a key part of this. 

“We provide generic high quality educative material that assists the adviser in better understanding the value proposition they can offer their customers in providing best interests advice,” Mr Hacopian told ifa.

Mr Hacopian said Challenger provides master classes and practice management sessions that assist in “the financial literacy of these advisers in better understanding the needs and risks retirees face and the latter part of retirement aged care”.

He also said Challenger has developed a new course and diploma that will be launched through the University of NSW and its advice services team.

Mr Hacopian said the course has been designed to be an “additional level of education to raise the financial literacy standards of our very valued advisers so they can continue to keep up with the changing economic and legislative environment”. 

“It’s this education and this approach to making sure we remain relevant to delivering high quality solutions to their customers that has led to the very strong growth in lifetime sales,” he said.

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