Challenger Backs APRA's Proposed Changes to Capital Settings for Annuity Products; Shares Rise 7%

MT Newswires Live
02-27

Challenger (ASX:CGF) said it supports the Australian Prudential Regulation Authority's (APRA) announcement regarding a consultation on changes to capital settings for annuity products and it looks forward to playing an active role in the consultation process, according to a Thursday Australian bourse filing.

APRA's proposed changes cover the approach to calculating the "illiquidity premium" to lower life insurer capital requirements for annuity products, the regulator said in a separate statement Thursday.

A "more market sensitive approach" will support increased take-up of longevity solutions and grow the annuity market, delivering "significant" benefits to Australian retirees, the industry, and the broader economy, Challenger said.

Challenger's shares rose past 7% in recent trading on Thursday.

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