Challenger Boosts Sales to $740m

Financial services organisation Challenger (ASX:CGF) raised its sales target by 28.5 percent after its life annuities growth hit record numbers in March. Quarter sales reached $740 million after a $5m advertising campaign in February.

Chief executive Dominic Stevens said that Challenger upgraded its full year annuities from $1.4bn to more than $1.8bn after a $400m High Yield Fund conversion in February helped lift annuity sales. He said, "We have seen a continuation of trends across our business with strong flows to our boutique partnerships and record life sales."

Annuities sales rose 57 percent to $713m during the first half to December 31 and normalised cash operating earnings rose by 25 percent to $192m over the half, resulting in a $15m increase to its full-year guidance. Assets and funds under management added 22 percent from the corresponding period, reaching $27bn at March 31.

"We remain on track to meeting our FY11 retail life sales guidance which is now upgraded to in excess of $1.8bn following the conversion of the High Yield Fund," said Stevens.

Challenger Financial Group expects its life annuities product to contribute to the company's growth, as Australians find out about the benefits of a fixed interest retirement income.