This is definitely a key risk facing a company like Challenger. Working in the Life industry, I am comfortable in that asset and liability (and their interaction) management would be of very sound quality for a company like Challenger, given the amount of regulation the industry has. The pricing of long-term products like annuities would be based on future expectations of many things, including an assumption around asset earnings and scenarios of ups-downs.
What will be interesting is the incoming AASB 17 - Insurance Contracts and how it impacts the presentation of profits.
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