Challenger has reported a 46% increase in annuity sales for the September quarter to hit the $1 billion mark.

Fixed-term annuity sales in the quarter totalled $737 million, up from $611 million in the corresponding period last year.

Lifetime products achieved sales of $296 million, up from $96 million.

CEO Brian Benari says sales growth comes from investment administration platforms and expanding adviser relationships.

“Retirees are increasingly seeking longevity protection in the form of annuities to supplement the age pension,” he said. “Financial advisers are implementing income-layering and retirement income model portfolios to meet the needs of these retirees.”

Challenger has maintained cash earnings guidance of $620-$640 million for this financial year.