• Normalised NPAT up 9% to $456m, in line with guidance
• Normalised ROE exceeds target at 11.8%
• Strong growth in retail lifetime annuity and Japanese annuity sales

Challenger Ltd has reported a strong financial performance in the 2025 financial year, achieving its key financial targets and executing on strategic initiatives. Normalised net profit after tax (NPAT) increased 9% to $456 million, in line with the company's earnings guidance. Normalised return on equity (ROE) increased 110 basis points to 11.8%, exceeding the ROE target of 11.2%. Statutory net profit after tax (NPAT) increased 48% to $192 million, which includes the impact of unrealised Australian office revaluations and performance of the alternatives portfolio. Total Life sales of $8.6 billion included record retail lifetime annuity sales of $1.1 billion, up 26%, and Japanese annuity sales of $984 million, up 39% and double the FY25 annual minimum target. Challenger has made significant progress in building partnerships with superannuation funds, wealth managers and platforms, and the Funds Management business has grown its assets under management to $113 billion. The company's digital transformation is underway, with a focus on enhancing the customer experience and enabling greater integration of its retirement products across the financial system. Looking ahead, Challenger is targeting a normalised basic EPS guidance of between 66 and 72 cents per share for FY26, with the mid-point representing a 4% increase on FY25.

In FY26, Challenger is targeting a normalised basic EPS guidance of between 66 and 72 cents per share, with the mid-point of the range representing a 4% increase on FY25.

Challenger is a strong, well capitalised business that has made significant progress in executing its growth strategy throughout 2025. The company is very confident in its future and ability to achieve its financial targets and generate long-term sustainable growth.