Challenger maintains confident outlook for FY22
1 November 2021
“We have had a great start to [FY]2022,” CEO Richard Howes said in his address at last week’s annual general meeting.
“Our recent first quarter trading update demonstrated the strong momentum across the business, driven by our strategy to diversify our distribution channels and expand our retirement offering.
“We also expect strong profit growth.”
He says the business is on course to achieve $430-480 million in normalised net profit before tax. In the previous 2020/21 financial year, the business achieved $396 million in overall normalised pre-tax profit.
Last month Challenger said in a trading update that a double-digit growth in life sales in the September quarter underpinned its business as the financial year to June 30 got underway.
Total life sales for the three months to September rose 32% to $2.1 billion from a year earlier, the first quarter update said.
Other life sales, which represents the Challenger Index Plus product, performed particularly strongly and increased by 149% to $856 million, benefiting from new clients and retention of maturities.
“Looking ahead, I am very optimistic about Challenger’s future,” Mr Howes said in his annual general meeting address. “Following a period of significant disruption, our business has showed its resilience and is in great shape.
“Our business is well positioned for the future, with our refreshed strategy providing a clear and compelling plan to build on our strong foundations and capture growth from the tailwinds that continue to drive our business forward.”