Challenger (CGF) H1 2025 earnings summary

Executive summary

• Delivered strong 1H25 performance with 12% growth in normalised NPAT to $225 million and 28% rise in statutory NPAT to $72 million, with ROE above target and double-digit EPS and dividend growth.

• Record retail lifetime annuity sales ($583 million, up 24%) and Japanese annuity sales ($616 million, up 78%) improved Life book quality and reduced maturity rates.

• Significant investments in technology and operational platforms, including State Street and Accenture partnerships, are underway to support future growth and efficiency.

• Expanded distribution through new partnerships, adviser network growth, and brand enhancements, including UniSuper lifetime annuity partnership.

• Enhanced disclosures and transparency on total return and COE investment yields by asset class.

Financial highlights

• Normalised NPAT rose 12% year-over-year to $225 million; statutory NPAT up 28% to $72 million.

• Normalised EPS increased 12% to 32.8 cps; statutory EPS up 28% to 10.5 cps.

• Interim dividend increased 12% to 14.5 cps, fully franked, with a payout ratio of 44%.

• Group ROE post-tax at 11.6%, up 120 bps and above target; cost-to-income ratio improved to 32%.

• Group AUM reached $131.4 billion, up 12% year-over-year.

Outlook and guidance

• FY25 normalised NPAT guidance reaffirmed at $440–480 million, with the midpoint representing 10% growth on FY24.

• Targeting a dividend payout ratio of 30%-50% and maintaining a strong capital position within a 1.3x–1.7x PCA range.

• Continued focus on executing growth strategy, expanding reinsurance capability, and leveraging technology investments for future sales acceleration.