Challenger annuity sales surge 69pc

>While fixed-term sales were recorded at $365 million, an increase of 9 per cent, total lifetime annuity sales decreased to $80 million, a Challenger-issued statement said.

Challenger chief executive Brian Benari said lifetime retirement income annuities continue to see “strong demand”.

“With the third quarter our seasonally quietest period for annuity sales, we’ve still managed to grow fixed-term annuity sales by 9 per cent compared with the same period last year, and continued to experience strong demand for lifetime retirement income annuities, which accounted for 18 per cent of total retail annuity sales in the quarter,” Mr Benari said.

“Pleasingly, year to date net book growth now stands at 8.9 per cent, with Challenger on track to achieve our 2015 financial year net book growth target range of 11 per cent to 13 per cent,” he said.

As at 31 March 2015, Challenger's life investment assets were $12.8 billion, up $430 million for the quarter.

Life annuities are invested into fixed income, property, equities and infrastructure, the statement said.