Listed wealth manager Challenger has posted a full-year normalised net profit after tax of $468 million, up 3% on 2024-25.

The life business recorded a 12% rise in sales to $9.6 billion and 2.1% increase in normalised after-tax net profit to $470.5 million.

Challenger says sales growth was driven by record annuity sales, which supported annuity book growth of 10.7% and total life book growth of 9.2%. Domestic annuity sales increased 17% to $4.9 billion and included strong gains in lifetime annuity and fixed-term sales.

“We have maintained strong momentum across our retirement business, growing longer-duration sales and broadening our customer reach,” Challenger said in its annual report.

The business is “well placed” following the introduction last month of new prudential capital standards for providers of longevity products.

“The new standards ... reduce capital volatility and provide a stronger foundation for innovation and growth across Australia's retirement income market,” MD and CEO Nick Hamilton said.

“The structural opportunity in retirement continues to grow, and Challenger is well positioned to capture it.”

Starting this financial year Challenger says it will report earnings under a new group reporting framework that “better represents the building blocks of how it operates the business and creates value for shareholders”.

Core earnings will comprise spread income and fee-related income net of operating expenses, and operating profit will include core earnings and actual investment returns.

This financial year, Challenger has projected core basic earnings per share of 45c-49c.

“We enter FY27 with strong momentum and focus on our growth trajectory, reinforcing Challenger’s leadership position in retirement income and creating long-term value for shareholders,” Mr Hamilton said.