Investment group Challenger says first-half life sales rose 44% to a record $4.9 billion in the six months to December from a year earlier.

Life book growth posted an 8.4% rise, leading to about $1.4 billion in net flows to the business, Challenger announced last week in a half-year earnings update.

“Challenger Life’s institutional business continues to grow strongly, with the number of clients increasing fourfold over the past five years,” the business said.

“The focus on more comprehensive solutions, including using guaranteed income products, by retail and profit-for-member superannuation funds represents a significant growth opportunity for Challenger.”

Life normalised cash operating earnings increased to $287.4 million in the December half, up from $244 million a year earlier.

Challenger, which also has a funds management arm and a recently acquired bank business, says group-wide statutory net profit went up 27% to $282 million and normalised net profit after tax grew 21% to $166 million.

“In the first half of 2022, we delivered a strong result, driving growth right across our business, diversifying revenue and focusing on the disciplined execution of our strategy,” CEO and MD Nick Hamilton said.

“More broadly, the Life business delivered an impressive performance, with record-breaking sales driving book growth of over 8% for the half.”

Challenger says it expects strong profit growth to continue for the rest of this financial year and reaffirmed its 2021/22 guidance of normalised net profit before tax of $430- $480 million.