• Normalised NPAT up 2% to $229m
• Normalised basic EPS up 2% to 33.3cps
• Normalised ROE of 11.4% exceeds target

Challenger Ltd has reported a strong statutory and normalised financial performance in the first half of the 2026 financial year. Statutory NPAT increased 369% to $339 million, reflecting disciplined execution across the Life and Funds Management businesses, operational efficiency and investment gains across all asset classes in Life's investment portfolio. Normalised NPAT increased 2% to $229 million, while normalised basic EPS increased 2% to 33.3 cents per share. Normalised ROE of 11.4% continues to exceed the company's ROE target. Total Life sales increased 11% to $5.1 billion, driven by record annuity sales, which supported annuity book growth of 7.4% and total Life book growth of 5.8%. Domestic annuity sales increased by 37% to $3.1 billion, and offshore reinsurance sales were up 13% to a record $695 million. In Funds Management, the business continued to innovate and expand its alternative offerings, with Funds Under Management increasing 3% in the half to $116.2 billion. Challenger also announced that it intends to buy-back up to $150 million in shares on-market, subject to market conditions and regulatory approval, reflecting confidence in the business and its strong capital position.

Challenger is targeting a normalised basic EPS guidance of between 66 and 72 cents per share for FY26, which assumes a normalised NPAT of $455 million to $495 million.

Challenger has made strong progress in the first half of the year and is well placed to capture the opportunities ahead as Australia's retirement income market enters a new phase of growth.