• Investing in the business to drive growth
• Strengthening relationships across customer channels
• Successfully executing strategy
• Strong financial performance & delivering against targets

Challenger Ltd has delivered a strong set of financial results for the first half of fiscal year 2025, with normalised net profit after tax (NPAT) increasing 12% to $225 million and normalised earnings per share (EPS) growing 12% to 32.8 cents. The company's normalised return on equity (ROE) improved by 120 basis points to 11.6%, above the target range. Challenger has continued to successfully execute its strategy, with record retail lifetime annuity sales of $583 million, up 24% on the prior corresponding period. The company has also seen strong growth in Japanese annuity sales, up 78% to $616 million. This sales remix has resulted in 82% of the annuity book having a tenor of over 3 years, up from 75% in the prior corresponding period, improving the overall quality of the book.The company has made good progress on its key priorities, including investing in new technology platforms to enhance the customer experience and drive operating efficiencies. Challenger is also strengthening its relationships across customer channels, including a new lifetime annuity partnership with UniSuper, and expanding its asset origination capabilities through its Challenger Investment Management business.Looking ahead, Challenger has reaffirmed its FY25 normalised NPAT guidance of $440-$480 million, with a target normalised ROE of around 11.2% post-tax. The company is also targeting a cost-to-income ratio of 32-34% and a CLC PCA ratio range of 1.30x to 1.70x, reflecting its preference to maintain a strongly capitalised balance sheet.

Challenger has reaffirmed its FY25 normalised NPAT guidance of $440-$480 million, with a target normalised ROE of around 11.2% post-tax.

Challenger is investing in new technology platforms to enhance the customer experience and drive operating efficiencies, strengthening relationships across customer channels, and expanding its asset origination capabilities. The company is well-positioned to continue delivering strong financial performance and executing its strategy to drive future growth.