1H26 Challenger Shareholder Newsletter
| Stock | Challenger Ltd (CGF.ASX) |
|---|---|
| Release Time | 17 Feb 2026, 7:48 a.m. |
| Price Sensitive | Yes |
Challenger Reports Strong 1H26 Results
- Statutory NPAT increased 369% to $339 million
- Normalised NPAT increased 2% to $229 million
- Total Life sales increased 11% to $5.1 billion
- Funds Management FUM increased 3% to $116.2 billion
- Interim dividend of 15.5 cents per share
Challenger Ltd has reported a strong financial performance in the first half of the 2026 financial year. Statutory net profit after tax (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, and normalised basic earnings per share (EPS) increased 2% to 33.3 cents per share. Normalised return on equity (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 (FUM) increasing 3% in the half to $116.2 billion. Challenger remains strongly capitalised, with a Prescribed Capital Amount (PCA) ratio of 1.58 times the Australian Prudential Regulation Authority's (APRA) minimum regulatory requirement and $1.7 billion of capital in excess of APRA's minimum capital requirement. The company has also announced a fully franked interim dividend of 15.5 cents per share and a share buyback program of up to $150 million, subject to market conditions and regulatory approval.
In FY26, Challenger is targeting a normalised basic EPS guidance of between 66 and 72 cents per share, which assumes a FY26 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.