Challenger result reflects strategic settings

Challenger Limited’s full-year results have seen it report a 24% decrease in net profit after tax to $130 million despite a 21% increase in group assets under management to $127 billion.

The company chose to emphasise its 17% increase in net profit before tax of $608 million, with Challenger managing director and chief executive, Nick Hamilton describing it as a strong financial performance.

The board determined a fully franked dividend of 26.5 cents per share.

He said the Challenger Life business had performed exceptionally well and had demonstrated the company’s expertise in providing guaranteed income to more Australians with longer tenor term sales and lifetime annuity sales contributing to Life sales of $9.1 billion.

He said the Funds Management business had increased funds under management (FUM) by 19% to $117 billion.

“This year we made key decisions that will see us further strengthen and broaden the potential of our business,” he said.

“In our core retirement business, we commenced our customer uplift program that integrates technology and experience. This will make it easier to do business with us, enable the delivery of more retirement income solutions and position us for growth with customers, advisers, platforms and institutional clients.”

Hamilton said that Challenger was in a very strong position for the coming financial year with momentum across Life and Funds Management.

“We have a clear growth strategy that is orientated around the customer and leverages our core capabilities, underpinned by a strong balance sheet,” he said.