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About the guarantee

Annuity payments

Any reference to a guaranteed annuity payment in connection with annuities issued by Challenger Life Company Limited (Challenger Life) is a reference to the contractual obligations of Challenger Life under the terms of the applicable annuity to make those payments.

Any reference to a guaranteed annuity payment in connection with any managed investment scheme that invests in annuities issued by Challenger Life is a reference to the contractual obligations of Challenger Life under the terms of the applicable annuity (ies) to make those payments to the fund.

Challenger Life's obligations refer to, and are limited to, the annuities and payment guarantees provided by Challenger Life from its Statutory Fund No 2. Challenger Life is a life company registered under the Life Insurance Act 1995 (Cth), and is regulated by APRA.  The annuities Challenger Life issues are referrable to its Statutory Fund No 2 (Statutory Fund) which it is required to maintain under the Life Insurance Act.  The Statutory Fund generally contains a range of investments that may include bank bills, debt investments, convertible notes, shares, geared and ungeared property investments, infrastructure investments and other assets.  The underlying investment objectives of the Statutory Fund include:

  • achieving consistent returns from investments that ensure that the guaranteed rate of return offered to annuitants is earned; and
  • matching the liability cash flows with cash flows receivable from the underlying assets.

Both Challenger Life and the Statutory Fund are subject to prudential supervision by APRA.  APRA's prudential standards on capital adequacy require Challenger Life to provide levels of support in relation to its annuity liabilities through capital adequacy standards.  These capital adequacy standards are broadly designed to ensure that there are sufficient assets in the Statutory Fund to meet annuity liabilities even in adverse market conditions.  Challenger Life generally maintains a surplus above its required statutory minimum. 

Superannuation

References to guarantees in respect of Challenger Guaranteed Personal Superannuation and to Challenger Guaranteed Allocated Pension are to the contractual obligations of Challenger Life under the Life Policies that it issues to Challenger Retirement and Investment Services Limited.  Challenger Life's ability to meet these obligations is dependent on the assets it holds from time to time to support these obligations and on capital support held in accordance with APRA's capital adequacy standards. Additional information about the guarantees is found in the product disclosure statement for these products.

General

Neither Challenger Limited, nor any other any other company within the Challenger Limited group guarantees the performance of Challenger Life's obligations described above, nor do they provide any guarantee in respect of the repayment of your capital or any other obligation.

All investments are subject to risks.  Significant risks are outlined in the product disclosure statement or other offer document for the applicable product.