Challenger (CGF) H1 2026 earnings summary

Executive summary

• Statutory NPAT rose to $339m in 1H26, up 369% year-over-year, driven by strong asset experience and disciplined execution across Life and Funds Management segments.

• Normalised NPAT increased 2% year-over-year to $229m, with normalised EPS up 2% to 33.3cps.

• Interim dividend increased 7% to 15.5cps, fully franked, reflecting a payout ratio of 46.5%.

• Announced an initial $150m on-market buyback, reflecting strong capital position and intent to return excess capital.

• Positioned for growth through strategic partnerships, technology transformation, and offshore reinsurance expansion.

Financial highlights

• Statutory NPAT reached $339m (+369%); normalised NPAT $229m (+2%); normalised EPS 33.3cps (+2%).

• Group net income increased 1% to $487m; total expenses flat at $154m.

• Cost-to-income ratio improved to 31.7%, outperforming the 32%-34% target range.

• Group ROE at 11.4%, exceeding the full-year target of 10.7%.

• Life sales grew 11% to $5.1bn; annuity book growth at 7.4%.

Outlook and guidance

• FY26 normalised basic EPS guidance reaffirmed at 66–72cps, with 1H26 delivering 33.3cps.

• Through-the-cycle targets for ROE, cost-to-income, and capital remain unchanged.

• Group NPAT expected between $455m and $495m for FY26.

• Anticipates asset allocation shift toward fixed income as APRA capital reforms take effect from July 2026.

• Ongoing focus on innovation, technology upgrades, and expanding partnerships to capture demographic and industry tailwinds.