Fixed-term annuity sales rose by 22 per cent or $80 million from the previous corresponding quarter up to $445 million, according to the results.

Lifetime annuity sales increased by $50 million from first quarter sales last year up to $130 million for the first quarter this year, representing an increase of 63 per cent.

Life annuity net book growth for the quarter, Challenger said, was $135 million or 1.6 per cent.

Challenger chief executive Brian Benari said the key stand-out were the lifetime annuity sales, which accounted for 23 per cent of sales in the quarter and benefitted from the companies to embed annuities within platforms such as the Colonial and VicSuper platforms.

“This resulted in flows through Colonial First State, being up more than 100 per cent on the same period last year,” said Mr Benari.

During the quarter, he added, there was also significant progress with regulatory reform agenda.

“Treasury is currently setting the objective of superannuation. This is critical to prepare Australia for one of the great social and economic issues of our time – the ageing of Australia’s population,” he said.

“It’s also the first logical step in an expected series of reforms, including a review of retirement income streams regulation and the development of Comprehensive Income Products for Retirement.”

***Correction*** The previous headline for this story mistakenly had the reporting period as quarter one. 

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