Company news: Challenger Financial
Challenger announced two new distribution agreements for its annuity products.
AMP will provide Challenger's products through their investment and administration platforms, which will include access to AMP's corporate and retail superannuation customers. This extends the relationship that AMP already has with Challenger, through annuity distribution via financial advisers in the company's wealth management division.
Challenger has also established a distribution relationship with a provider of annuity and insurance products in Japan: MS Primary. Challenger will provide AUD denominated annuities into the Japanese market (MS Primary's currently has ~A$20 billion in force, and annuities are viewed favourably in the Japanese market, with the country's aging population).
The further extension of Challenger's distribution network bodes well for continued growth in annuity sales.
Challenger also held its AGM this week. Pleasingly, the company affirmed its FY-17 Cash Operating Earnings guidance for the Life division of $620m to $640m (vs $592m for FY-16).