Investment Matters


Challenger released another solid result for FY-16.  Overall, normalised profit increased 8%, normalised EPS was up 6%, and the dividend was 8% higher, as compared to FY-15. 

The company's main division, Life (annuities) achieved a 22% increase in annuity sales, with an especially strong result in H2 (+45% on pcp).  This is a strong result, which will contribute to future earnings growth.  Two new distribution partners were added, Suncorp and Clearview, which will add to future sales in an environment where annuity awareness and demand from retirees is increasing.  Earnings from Life division increased 9% in FY-16 (as compared to FY-15).

FUM for Challenger's funds management division increased 11% (excluding Kapstream, sold in Jul-15), and net income increased $16m or 9%.  Earnings were impacted by BREXIT (impacted Challenger's Fidante European operations), to be down 15%; they would have been +7% without this.

Challenger FY