Challenger Life has reported a 4% increase in annuity sales to $1.6 billion for the six months to December 31.

Fixed-term annuity sales grew 12.5% to $1.4 billion in the period, but lifetime annuity sales dropped 28.4% to $228.7 million. 

There was a 3.4% decline in total life sales, to $2 billion.

Annuity claims and payments in the six months to December 31 totalled $15 billion, up from $1.1 billion in the previous corresponding period.

Challenger Life’s net income totalled $292 million, up from $257 million.

Net profit before tax was $248 million for the half-year, compared with $215 million in the corresponding period of 2014.    

CEO Brian Benari says underlying annuity sales keep growing.

“We are seeing encouraging early signs from the recent launch of annuities on platforms, which already account for 5% of total annuity sales.”

Challenger says of activity on the Colonial First State platforms, “45% has been from advisers who had not written an annuity in the past three years”.