Challenger’s annuity sales continue to rise, gaining 34% to $2.2 billion in the six months to December 31.

Fixed-term annuity sales account for most of the business, with inflows of $1.6 billion, compared with $1.4 billion in the corresponding period of 2015.

Lifetime annuity sales doubled to $554 million.

However, maturities and repayments also increased, to $1.7 billion from $1.3 billion.

Challenger CEO Brian Benari says the results show strong momentum in the life business, with all performance metrics growing.

“During the first half we achieved record annuity sales and a record low cost-to-income ratio,” he said.

“Importantly, we also paved the way for future growth by expanding our distribution relationships and our product offering.

“This is enabling us to make the most of opportunities arising from the rapid growth in the retirement income market.”

Challenger has expanded its distribution deal with BT Financial Group, offering term annuities, lifetime annuities and CarePlus through the new Panorama platform from the first quarter of 2017/18 – the same date from which AMP will offer Challenger annuity products.

“Once both of these distribution relationships have come on line, Challenger annuities will be represented on investment and administration platforms used by two-thirds of financial advisers in Australia,” Mr Benari said.

“Access to annuities on platforms makes it easier and more efficient for advisers to recommend the use of annuities to their clients and is a key driver of sales.”