Challenger  posted a 29% rise in assets under management to a record $110 billion in the year to June 30, driven by strong contributions from its life and fund management arms, the investment group reported last week.

Total life sales  also set a new peak, surging 35% to $6.9 billion, underlining the success of its diversification strategy. The record sales  drove life book growth of  14%  for the year.

The focus on institutional clients paid off, with domestic institutional sales up 53% to $4 billion.

Domestic retail sales were also up, by 19% to $2.1 billion,  reflecting Challenger’s strategy of working  with a wide range of advice groups and independent financial advisers and supported by a  stabilisation  in the advice market.

“The life business performed strongly, with book growth of 14%,” CEO and MD Richard  Howes  said.

“Sales were up across all key  segments, notably in domestic institutional sales, reflecting our strategy to deepen engagement  with institutional investors.

“Pleasingly, domestic retail sales also performed strongly, following our  emphasis on building relationships with independent advisers, and benefiting from  stabilisation  of  the wider advice market.”

Overall  normalised  net profit before tax came in at $396 million, which is at the lower end  of Challenger’s guidance of $390-440 million.

The business achieved a statutory net profit after-tax of $592 million, reversing the $416 million loss booked in the year-earlier 2019/20 fiscal period.

Challenger announced in a separate statement  that Mr  Howes  has decided to step down in March next year.

He joined the business in 2003, serving in a number of roles  including group CEO, chief executive of distribution, product and marketing, and chief  executive of Challenger’s life business.

The board will conduct an internal and external search process to select a successor.

Long-serving executive Chris  Plater  has been appointed Deputy CEO with effect from today to “support continuity of leadership”.