• Life business normalised NPAT up 7.4% to $224.6 million
• Funds Management NPAT up 37.1% to $27.0 million
• Total Life sales down 12.0% to $4,625.4 million

Challenger Limited reported its 1H25 financial results, with the Life business delivering a 7.4% increase in normalised net profit after tax to $224.6 million. This was driven by a 7.3% increase in Normalised Cash Operating Earnings, partially offset by a 2.2% increase in expenses and a 10.5% increase in normalised tax. Life's Normalised return on equity (post-tax) was 13.0%, up 50 bps on 1H24. Total Life sales were $4,625.4 million, down 12.0% on 1H24, driven by lower Lifetime annuity sales, partially offset by a 24.2% increase in retail Lifetime annuity sales and a 77.7% increase in Japanese annuity sales. Annuity net flows were $149.4 million, down from $508.0 million in 1H24. The Funds Management business reported a 37.1% increase in normalised net profit after tax to $27.0 million, primarily due to higher total net fee income (up 8.8%) and lower expenses (down 3.1%). Funds Management's total FUM increased by $13.4 billion (or 12.5%) during the period, although it experienced net outflows of $3.1 billion. The Corporate segment reported a normalised loss after tax of $26.4 million, down $1.8 million from 1H24.

Challenger's FY25 normalised net profit after tax guidance is a range of between $440.0 million and $480.0 million. The mid-point of the FY25 normalised net profit after tax guidance ($460.0 million) is 10.4% higher than the FY24 normalised net profit after tax of $416.6 million.