• Challenger's capital position is significantly more resilient to market shocks under proposed standards
• Excess capital to create strategic optionality
• Changes to investment portfolio to reduce capital intensity

Challenger Limited (ASX:CGF) is holding an analyst and investor briefing on APRA's proposed capital standards. The key points are:1. Capital resilience: Challenger's capital position is significantly more resilient to market shocks under the proposed standards. The risk of management actions needing to be taken is materially reduced.2. Excess capital: Challenger will have excess capital comprising both CET1 and AT1/T2, providing strategic optionality. Assuming no change in the target PCA range, around three-quarters of the capital base benefit would arise as excess CET1.3. Investment portfolio changes: Challenger will increase its investment in fixed income over time to reduce capital intensity, positioning the company for growth in longer duration annuity products. The growth asset allocation is expected to be 30-40%.Challenger will respond to APRA's consultation, undertake further strategic assessment, and review its investment strategy and operational readiness to implement the proposed changes. FY27 scenario modelling and business planning will include a review of the normalised reporting framework and guidance metrics.

Challenger has not provided any high-importance, price-sensitive forward-looking financial metrics in the announcement.