Challenger has reported life annuity sales of almost $1.1 billion for the quarter to September 30, up 6.2% on the corresponding period last year.

Fixed-term sales increased to $887 million from $737 million, but lifetime sales declined to $210 million from $296 million.

First-quarter total life sales, comprising annuity and other life sales, grew 45% to $1.57 billion. Other life sales increased to $473 million from $50 million.

“We’ve continued to focus on driving sustainable book growth, with strong sales of long-term annuities, underpinning future performance,” CEO Brian Benari said.

“We will realise the benefits of this strategy as scheduled maturities continue to fall through 2018 and beyond.”

Challenger is aiming for normalised pre-tax net profit of $545-$565 million this financial year.