Challenger, Australia's largest annuities provider, has announced an impressive 80% increase in net profit for the six months ending in December. This growth can be attributed to record new business annuity sales and strong net flows in its funds management division.
The company reported a net profit of AUD 56.3 million (USD 36.8 million) during this period. Revenue also saw a significant rise of 46% to reach AUD 974.1 billion. The normalized net profit before tax increased by 16% to AUD 290 million.
Chief Executive Nick Hamilton expressed satisfaction with the company's performance, stating, "Retirement is fundamentally different to the accumulation phase of superannuation, and the momentum across our Life business highlights our expertise in meeting Australians' growing demand for secure, guaranteed income."
Challenger has projected that its annual normalized pretax profit will be in the top half of the guidance range of AUD 555 million to AUD 605 million. This range does not include Challenger Bank, which is currently being sold and is expected to be completed by the second half of the fiscal year.
Directors of the company have declared an interim dividend of 13 Australian cents per share, representing an 8.3% increase compared to the previous year.