While that maybe true, my thesis is around growth in the volume...

While that maybe true, my thesis is around growth in the volume of annuities sold. So while the margins might be low, I am hoping they will be offset by massive amount of annuities sold. This is just the beginning of the explosion. If people want a quality company to buy and hold for next 10-20 years then this is the one. Its killing the market and doing deals left right and centre with super funds. With the CIPR becoming compulsory, every fund will mostly add a annuity type product that will satisfy the "income" part of the proposed Rec 11 under the CIPR rules. The premise of a CIPR will be threefold, where a pension account will comprise of 3 things
1: Age pension
2: Adding an income product aka Challenger annuities
3: Account based pension - balance saved by people during their super phase will be invested in assets that will provide a mix of income and growth.
The main premise is to ensure that sequencing risk is mitigated as people will only have about 15 years worth of retirement money but will live around 24 (men) and 27(women) years more by 2050 assuming they retire at 65.

I recommend looking at the Vicsuper CIPR product diagram in the link below to understand my rant above.
http://investmentmagazine.com.au/20...ds-developing-cipr-with-challenger-annuities/

And this is the second mega deal
http://investmentmagazine.com.au/2015/06/challenger-enters-pole-position-for-cipr/

It's a $2 trillion market and expected to grow to $6 trillion in next decade or two. And this is Australia alone !!! How many companies listed on the ASX have such a big target market??