Challenger sales up by a third; grows profit
Challenger has recorded a more than one-third increase in life product and annuity sales, with normalised profit also up 20 per cent, according to the group's full year financial results released to the Australian Securities Exchange (ASX).
Life product sales grew by 35 per cent to $2.66 billion, comprising annuity product sales of $1.95 billion (up 34 per cent) and $704 million in institutional sales.
The group's normalised net profit after tax (NPAT) was up 20 per cent to $297 million, although statutory NPAT - which includes unrealised changes in asset value - dropped from $261 million to $149 million.
Normalised earnings per share were up 11 per cent to 57.5 cents per share, with a final dividend of 10.5 cents, bringing the full year dividend to 18 cents.
Challenger chief executive Brian Benari said the group had been mindful of watching its cost base during a "trying" last four years, but had been fortunate to grow its assets under management, sales and profits in that time.
The group's cost-to-income ratio reached a record low of 35.9 per cent during the year, according to the ASX statement.
Benari credited the "organic sales engine" Challenger created in its annuities business and its boutique funds operation, Fidante Partners, for boosting the group's top and bottom line.
Challenger Funds Management's funds under management grew 31 per cent, or $7.4 billion, to $31 billion. Net flows of $4.2 billion included $1.1 billion from Fidante's acquisition of Asian emerging markets specialist boutique MIR Investment Management.
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