Challenger is confident of meeting its earnings target after a strong start to this financial year.

The Australian wealth group’s first-quarter trading update says it is aiming for normalised basic earnings per share of 66c-72c. Last financial year, normalised EPS rose 9% to 66.3c.

Total life sales grew 4% to $2.5 billion in the quarter, driven by strong annuity sales.

“Building on last financial year’s strong performance, Challenger has started [2025-26] with continued momentum in annuity sales while progressing a range of strategic initiatives to support future growth,” CEO and MD Nick Hamilton said.

Challenger has reiterated its backing for the Australian Prudential Regulation Authority’s plan to modify the capital framework for annuities.

“We look forward to APRA’s upcoming changes to capital settings for longevity products that represent one of the most significant regulatory updates for life insurers in over a decade,” Mr Hamilton said.

“These changes are expected to benefit the industry and retirees by increasing balance sheet resilience, promoting product innovation, encouraging the uptake of guaranteed retirement products, and supporting the broader Australian economy through investment in long-term assets.”