Challenger Limited (ASX:CGF) Supports APRA’s New Annuity Capital Settings
Challenger Limited (ASX:CGF) has expressed support for the Australian Prudential Regulation Authority’s (APRA) consultation on new capital settings for annuity products. The company believes the proposed changes will foster innovation and increase the uptake of lifetime income products, providing greater choice and certainty for retirees.
Regulatory Reform Impact
The proposed capital settings aim to align asset and liability cashflows more closely, reducing the required capital levels for annuity products. This alignment creates a more favourable environment for annuity provision and lessens the procyclicality faced by life insurers during market downturns. Challenger Limited views these reforms as a significant improvement over current prudential standards.
Future Engagement
Challenger is committed to actively participating in APRA’s consultation process and plans to develop a comprehensive submission in response to the proposals.
Executive Comments
Chief Executive Nick Hamilton stated, “Challenger welcomes progress on this important initiative that will improve annuity offerings for all Australians and support guaranteed income being an integral part of the retirement planning process. The proposals will also improve the financial resilience of life insurers and establish a more favourable environment to grow the annuity market and provide reliable, guaranteed income streams in retirement.”
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Challenger. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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