• Normalised NPAT increased 2% to $228.9 million
• Statutory NPAT rose to $338.7 million
• Normalised EPS up 2% to 33.3 cps
• Interim dividend up 7% to 15.5 cps

Challenger Ltd has reported a solid set of financial results for the first half of fiscal year 2026, delivering against its financial targets and maintaining strong momentum in the execution of its strategy. The company's statutory net profit after tax (NPAT) increased to $339 million, benefiting from positive asset experience across its investment portfolio. Normalised NPAT, which removes short-term volatility, rose 2% to $228.9 million, driven by higher net income and stable expenses. Normalised earnings per share (EPS) increased by 2% to 33.3 cents per share. Challenger maintained cost discipline, with the normalised cost-to-income ratio improving by 30 basis points to 31.7%, positioning the company slightly below its target range of 32% to 34%. The company's retirement services business, Challenger Life, remains Australia's largest provider of annuities and a trusted leader in retirement income solutions. Challenger's funds management business also performed well, contributing to the group's overall result. The Board determined a fully franked interim dividend of 15.5 cents per share, up 7% on the prior year, reflecting the company's strong capital position and commitment to delivering shareholder returns. Challenger is well positioned to continue delivering on its strategic objectives, supported by a resilient balance sheet, scalable operating model and growing demand for retirement income and investment solutions.

Challenger expects to maintain its strong capital position, with the Challenger Life Company (CLC) Prescribed Capital Amount (PCA) ratio at 1.58x as of 31 December 2025, compared to 1.60x in the prior year.

Challenger remains well positioned to benefit from long-term growth in Australia's superannuation system and regulatory reforms designed to enhance the retirement phase of superannuation. The company is actively building new institutional partnerships and is well positioned to support defined benefit pension de-risking.