Challenger posts solid half-year results
Challenger has produced a net profit after tax (NPAT) of $149 million for the six months to 31 December 2012, up 17 per cent on the prior corresponding period.
In addition, statutory NPAT increased substantially in the prior corresponding period to $222 million, the results showed.
According to Challenger, the increase in statutory profit was due to a positive investment experience following the recovery of the debt market during the half, including realised and unrealised gains and losses arising from the revaluation of assets and liabilities, as required by life insurance accounting standards.
The group also posted a 29 per cent increase in total assets under management to $38.3 billion compared to the prior corresponding period.
Over the last five years, the group has grown revenues by 48 per cent and normalised profit by 40 per cent, while expenses have only risen by 9 per cent, Challenger managing director and chief executive Brian Benari said.
"Growth in both our business divisions is underpinned by long-term trends," he said.
"Shifting demographics and a change of risk preferences means that baby boomers will continue to seek suitable strategies to convert their lump sums into secure, life-long income streams."
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