Challenger (CGF) investor relations material

Executive summary

• Achieved strong financial results with normalized EPS up 3% to 68.1 cents and statutory NPAT of $506 million, up 163% year-over-year, driven by operational efficiency and positive asset/liability experience.

• Successfully transitioned to new APRA capital standards, enhancing business resilience and growth capacity.

• Strategic focus on retirement income, multichannel distribution, and operational efficiency, with significant partnerships, product launches, and the Fidante/Channel Capital merger.

• Maintained strong capital position, with ordinary and special dividend growth, and executed a $450m buy-back.

Financial highlights

• Statutory NPAT reached $506 million, up 163% year-over-year; normalized NPAT was $468 million, up 3%; normalized EPS at 68.1 cents, up 3%.

• Full-year ordinary dividend of 31.5 cents per share, up 7%, plus a special dividend of 1.5 cents per share.

• Group net income rose to $995 million; total expenses held at $319 million, cost-to-income ratio improved to 32.1%.

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

• Annuity sales up 19% to $6.2 billion; average investment assets up 6% to $26.2 billion.

Outlook and guidance

• FY27 core EPS guidance set at 45–49 cents per share, midpoint representing 6% growth on FY26 core EPS.

• Medium-term targets: compound operating EPS growth of 8%-10% over three to five years, operating ROE target of 12%-14% after tax, and dividend payout ratio of 65%-75% of core EPS.

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

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