Analyst Note| Shaun Ler |
No-moat Challenger is not the same major bank-dependent annuity seller as in 2018. Immediate priorities are on client diversification, product expansion, and paying up for future growth. In its core annuities business, Challenger noted it will form more sales relationships with institutional clients and sell directly to investors. It intends to leverage the to-be-approved bank acquisition to sell term deposits, and expand its customer cohort. In funds management, the firm will partner with more specialist managers, distribute more products, and sell to a wider audience.