Challenger reaffirms guidance as Q1 annuity sales climb
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The news: Investment manager Challenger has reaffirmed its full-year earnings guidance after reporting an uptick in first-quarter annuity sales.
The numbers: First-quarter sales from Challenger's annuity arm Challenger Life were up 4% to $2.5 billion compared to the prior corresponding period. Lifetime annuity sales were up 16% year on year to $320 million, while fixed term annuity sales rose 29% to $1.1 billion.
Funds under management slipped 3% to $109.6 billion. Group assets under management fell 2% to $120.9 billion.
Challenger reiterated its FY26 normalised earnings per share guidance range of between 66 and 72 cents.
The context: Managing director and CEO Nick Hamilton said the company started FY26 with continued momentum in annuity sales while progressing a number of strategic initiatives to support future growth.
Sales across Challenger's retirement income products have remained strong, he noted, supported by demand for guaranteed lifetime income and an increasing number of Australians entering retirement and aged care.
The source: ASX
