Challenger has recorded a strong March quarter for sales of its annuity products and predicts it will meet 2012 financial year sales targets.

It has reported $779 million net annuity sales for the March quarter compared to $771 million in the corresponding period last year.

Retail sales for this March quarter were $364 million, up 23%, while institutional sales grew by 34% to $415 million.

The strong sales quarter has lifted Challenger’s life business assets under management to $9 billion, up 14% on $8.2 billion in the corresponding period last year.

CEO Brian Benari says the strong retail inflows during means Challenger is on track to achieve its 30% year-end sales growth forecast.

“We also reaffirm life’s 2012 cash operating earnings forecast of $435 million and a consistent cash operating earnings margin during the second half,” he said.

The company started a major advertising campaign in February to encourage financial advisers and consumers to look at annuity products again as part of retirement savings plans.