• Normalised NPAT up 12% to $225m
• Statutory NPAT up 28% to $72m
• Group ROE of 11.6%, above target

Challenger reported a strong result in the first half of the 2025 financial year, delivering against its financial targets and executing its growth strategy. The Life business maintained its momentum, growing longer tenor, more valuable annuity sales that will help improve the quality of the Life book. The Funds Management business continued to expand its leading range of investment strategies and managers, establishing a platform to originate and service large pools of mortgage-backed whole loans and broadening its network of affiliate managers. Challenger also made significant progress in re-platforming its customer and investment technology, which will lay the foundations for the next phase of its growth strategy. Normalised net profit after tax (NPAT) increased 12% to $225 million, and normalised ROE increased 120bps to 11.6%, outperforming the target. Statutory net profit after tax (NPAT) increased 28% to $72 million, which includes an unrealised impact of commercial office revaluations and accounting valuation changes to Life Risk liabilities. Total Life sales of $4.6 billion included exceptional sales across longer duration products across retail lifetime and Japanese (MS Primary) annuities. Challenger continues to make progress in building its pipeline of retirement income partnerships and defined benefit opportunities, including being selected as the sole external lifetime annuity provider on UniSuper's Approved Product List (APL) and issuing a group lifetime annuity to support a defined benefit de-risking transaction.

In FY25, Challenger is targeting normalised net profit after tax guidance of between $440 million and $480 million, with the mid-point of the range representing a 10% increase on FY24.

Challenger enters the second half of FY25 in great shape and is building a business with strong fundamentals that will ultimately create more value for its investors and generate long-term sustainable growth.