Challenger’s annuity sales were unchanged at $4 billion last financial year, while total life sales increased 12% to $5.6 billion.

Life sales excluding annuities grew 65% to $1.6 billion, with the group looking to expand its customer base, product range and distribution activities.

The total life book increased 37% to $1.8 billion on strong sales and a reduction in maturity rates, with annuity book growth of 55% to $1.4 billion.

“Providing options for Australia’s retirees to convert superannuation into income that lasts for life has become an increasing focus for industry and government,” CEO Brian Benari said. “Challenger is ideally positioned as lifetime products become an increasingly mainstream option in retirement.”

Fixed-term products represented 48% of the life book, with lifetime annuities accounting for 37% and other offerings the remainder.

Net profit after tax fell 19% to $323 million. Earnings, excluding new business strain, asset and policy liability experience and significant items, grew 6% to $406 million.