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Challenger says ‘tailwinds’ will drive growth 

Investment group Challenger says the business, particularly its core life division, is primed for further growth after posting strong results for the last financial year. 

Group-wide normalised net profit before tax rose 10% to $521 million in the 12-month period to June 30 from a year earlier and life earnings before interest and tax (EBIT) increased 14% to $541 million, benefitting from both margin expansion and assets under management growth. 

“Growth across life sales was particularly pleasing,” Chairman Duncan West said at last week’s annual general meeting (AGM). 

“The business delivered record annuity sales, with exceptional growth across retail sales as Challenger met retirees’ growing demand for guaranteed income. 

“The strength of our business, combined with supportive tailwinds ensures that Challenger is well positioned for the future, and I am confident in our ability to deliver sustainable growth for our shareholders.” 

Challenger released its full-year results in August and has said for this financial year it is focused on growing its core retirement and investment businesses and accelerating growth through life sales. It is also aiming to increase its fund management business. 

“At Challenger, our two complementary businesses, Life and Funds Management, turn our purpose into meaningful outcomes,” CEO and MD Nick Hamilton told shareholders at the AGM. 

“Together, Life and Funds Management form a unique and complementary business, that is a leader in savings and retirement income.” 

For this financial year Challenger is targeting normalised net profit before tax guidance of between $555 million and $605 million, with the mid-point of the range representing an 11% increase on FY23.  

The guidance range excludes Challenger Bank, the sale of which is expected to complete in the December half.