Challenger Limited (ASX:CGF) posted strong first-quarter results for FY25, with total assets under management increasing to $128 billion, up 1%. Total Life sales reached $2.4 billion, driven by a 26% rise in retail lifetime annuity sales and a significant 74% increase in Japanese annuities. However, fixed-term annuity sales saw a drop of 28% due to competitive pressures and an inverted yield curve.
Challenger’s Managing Director and CEO, Nick Hamilton, highlighted the company's ongoing efforts to drive long-term growth. “We have maintained momentum in the first quarter, with a strong sales performance across our longer-duration lifetime and Japanese annuity products,” Hamilton said. He further noted that despite challenges in the short-term annuity market, “sales activity and market interest remain high.”
Challenger’s Funds Management business also recorded a 1% increase in funds under management, reaching $119 billion, benefiting from positive market movements. The company remains well-capitalised with a PCA ratio of 1.61 times.
Challenger continues to invest in its technology platform to enhance accessibility for retirement products, which Hamilton stated is “essential for our growth strategy.”
