• Financial strength driving returns for shareholders, operational efficiency, gains across all investment asset classes
• Strong capital flexibility with excess liquidity, dividend growth, and $150m on-market buy-back announced
• Enabling growth through key retirement partnerships, advice technology integration, and expanding offshore reinsurance

Challenger Ltd reported a strong 1H26 performance, delivering statutory NPAT of $339m (+369%) and normalised EPS of 33.3cps (+2%). Normalised ROE was 11.4%, 70bps above the 1H26 target of 10.7%. The company highlighted its financial strength, with a CLC PCA ratio of 1.58x and a $4.7bn regulatory capital base. Challenger also demonstrated capital flexibility, with excess liquidity, 7% dividend growth, and a $150m on-market buy-back announced. The company's growth enablers included winning key retirement partnerships, integrating with advice technology platforms, and expanding its offshore reinsurance business. Across the investment portfolio, Challenger reported positive asset experience across all asset classes, with a weighted average total return of 10%. The Funds Management business also delivered earnings growth, with a 2% increase in net income and a 5% reduction in expenses. Looking ahead, Challenger reaffirmed its FY26 guidance and targets, including a normalised ROE target of RBA cash rate plus 12% after tax, a cost to income ratio of 32-34%, and a dividend payout ratio of 30-50%.

Challenger reaffirmed its FY26 guidance and targets, including a normalised ROE target of RBA cash rate plus 12% after tax, a cost to income ratio of 32-34%, and a dividend payout ratio of 30-50%.

Challenger outlined key priorities for the year ahead, including continuing to drive customer innovation, executing on announced retirement partnerships, expanding its asset origination and investment excellence capabilities, and maintaining capital strength and flexibility, including implementing APRA capital reforms and commencing a $150m on-market buy-back.