Challenger (ASX:CGF) demonstrated momentum in its third-quarter update, headlined by a 19% growth in total life sales, reaching $1.7 billion.
The growth was primarily propelled by a robust performance in the retirement business, with lifetime annuity sales climbing 18% to $289 million and offshore reinsurance annuity sales rising 17% to $281 million.
While fixed-term annuity sales saw a more modest 2% increase, the overall annuity net book grew by $274 million, representing a 1.7% expansion for the quarter.
Managing Director and CEO Nick Hamilton attributed these results to the heightening demand for guaranteed income solutions, particularly within the ageing populations of Australia and Japan.
The company’s funds management division saw funds under management retreat by 10% to $104.5 billion. Hamilton noted that global market volatility led institutional allocators to reduce their exposure to active equity management, impacting the total FUM.
Despite this, Challenger maintains a capital position with a PCA ratio of 1.51 times.
The company recently established an integrated retirement income solution with BT Panorama and an asset partnership with Bank of Queensland (ASX:BOQ).