Challenger (CGF) investor relations material

Strategic Direction, Vision, and Growth Opportunities

• Positioned to capture the expanding retirement income market, leveraging demographic trends and superannuation growth, with 285,000 Australians retiring annually and a 140% increase in those over 85 by 2041.

• Aims to provide financial security for a better retirement, focusing on annuities, advice, and tailored solutions as retirement becomes a multi-phase journey.

• Expanding the retirement ecosystem through partnerships with super funds, advisers, and technology providers, embedding annuities and income solutions.

• Investing in scalable technology, digital advice tools, and operational efficiency to reduce friction and enable seamless customer and adviser experiences.

• Expansion into offshore reinsurance with Calix Re in Bermuda, targeting Asian markets and diversifying earnings, anchored by a decade-long partnership with MS Primary.

Financial Guidance and Capital Management

• APRA’s new capital standards for longevity products significantly improve capital efficiency, resilience, and reduce pro-cyclicality, providing strategic optionality for growth.

• Holds over $1.7bn in excess capital and maintains an A+ credit rating, supporting buybacks and capital flexibility.

• Pro forma PCA ratio increases by 14 points, unlocking approximately AUD 300 million in excess CET1 capital, with illustrative scenarios showing higher PCA ratios and reduced need for management actions under stress.

• Announced an initial AUD 150 million share buyback, with plans for a further AUD 300 million return to shareholders, subject to approvals.

• Transitioning to a new reporting framework focused on spread income, fee income, and investment gains/losses, aiming for higher quality earnings and valuation uplift.

Technology, Innovation, and Customer Experience

• Major uplift in customer technology to enable digital origination, AI deployment, and seamless integration with partners, modernizing user experience and reducing sales friction.

• Embedded annuities and lifetime income products into adviser workflows via platforms like Iress Xplan, reducing manual processes.

• Investments in digital advice (Ignition, If) and partnerships with super funds are scaling advice delivery and improving efficiency.

• Amplifies brand through partnerships, education, and digital engagement, supporting advisers with tools and resources, including the Australian PGA partnership.

• Ongoing transition to State Street and Charles River platforms for Fidante to ensure operational scalability and advanced analytics.