Packer firm set for annuities assault

AUSTRALIAN tycoon Kerry Packer has arrived in the British life insurance market through his interest in up-and-coming Australian financial firm Challenger International. Packer owns about one-fifth of Challenger, which said today that it has been granted a life office licence by Britain's Financial Services Authority, allowing it to roll out specialist annuity products. Packer bought into Challenger through his private company in 1998.

Challenger, whose net profit doubled to A$109m (£41m) in the six months to end-December, plans to have its specialist UK annuity products for sale in the second half of this year.

Managing director Bill Ireland said: 'In the shorter term, we aim to be selling annuities in the UK at a similar rate as in our Australian annuities business - so the target is to be selling at the rate of A$300m per annum in the UK by the end of 2002.'

Challenger's property interests are A$2.2bn worldwide. The company made some British acquisitions last year and said recently it had earmarked US$150m to enter the US property market in the. Challenger has more than A$9bn in total assets under management and 100,000 investors in Australia, New Zealand and the UK.