New Distribution Channels Propel Challenger's Third-Quarter Annuity Sales

Challenger continues to tick along nicely, with total life sales of AUD 864 million in third-quarter fiscal 2016, taking sales for the first nine months of fiscal 2016 to AUD 2.9 billion. While down 1.7% on the prior corresponding period, there was a meaningful pickup in other life sales in the third quarter (mainly reinvestment of maturities), and annuity sales were up 29% on third quarter 2015 to AUD 575 million. Total annuity sales for the first nine months of fiscal 2016 were AUD 2.2 billion, up 9.7% on the prior corresponding period. We make no changes to our sales assumptions. With Challenger's marketing campaigns, increased distribution capability, and new products continuing to attract inflows, we expect a strong fourth quarter. Challenger attributed strong sales growth to recent launches of Challenger annuities on Colonial and VicSuper platforms. The benefits evidenced by 51% of Colonial platform sales coming from advisers who hadn't written a Challenger annuity for three years or more.