Challenger (CGF) investor relations material

Executive summary

• Achieved strong earnings growth, with statutory NPAT up 163% year-over-year to AUD 506 million and normalized NPAT up 3% to AUD 468 million, supported by operational efficiency and robust annuity sales.

• Maintained a strong capital position, increasing ordinary and special dividends, and executed a $450 million buy-back.

• Enabled growth through new retirement partnerships, advice integration, asset origination, CABN launch, offshore reinsurance expansion, and the Fidante/Channel Capital merger.

• Expanded partnerships with superannuation funds and advice technology providers, reinforcing leadership in retirement income.

• Launched new income solutions and innovative products, including LiFTS and CABN notes, both oversubscribed.

Financial highlights

• Statutory NPAT reached AUD 506 million, up 163% year-over-year; normalized NPAT was AUD 468 million, up 3%.

• Normalized EPS was 68.1 cps, up 3% year-over-year; normalized ROE after tax was 11.6%, above target.

• Full-year ordinary dividend was 31.5 cps (+7%), with a 1.5 cps special dividend.

• Total Life sales grew 12% to AUD 9.6 billion, driving annuity book growth of 10.7%.

• Investment assets grew 4% to AUD 26.6 billion; third-party assets under management rose 10% to AUD 4.1 billion.

Outlook and guidance

• FY27 core EPS guidance set at 45–49 cps, representing 6% growth at the midpoint.

• Medium-term targets: 8–10% CAGR operating EPS growth, 12–14% operating ROE, 65–75% dividend payout ratio, and CLC PCA ratio of 1.15x–1.35x.

• Targeting AUD 50 billion in assets under management by 2030, up from AUD 31 billion.

• New reporting framework from FY27 will focus on Core Earnings and actual Investment Returns.

• Completion of Fidante/Channel merger expected late 1H FY27.