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Challenger Life grows on Baby Boomer demand
Challenger chief executive Brian Benari has pointed to the start of the Baby Boomer retirement wave as the main driver behind the growth in its life business in its 2013 interim half-results.
According to the results for the six months to 31 December 2012, the group achieved total sales of $1.98 billion, up 55 per cent on the prior corresponding period and 43 per cent on the second half of second half of 2012.
In addition, Challenger Life increased its assets under management to $10.2 billion, an increase of 17 per cent on the prior corresponding period.
"Shifting demographics and a change of risk preferences means that baby boomers will continue to seek suitable strategies to convert lump sums into secure, life-ling income streams," Challenger chief executive Brian Benari said.
In the four years since the first half of 2009, Challenger's retail annuity sales have grown at a compound annual rate of 33 per cent, the company stated.
"These days people in their 60s are caring for parents in their 80s and 90s, which really drives home the need to make their savings last as long as they do," Benari said.
He said this has been the driver behind the strong sales of Challenger's Liquid Lifetime and Care Lifetime annuities.
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