Challenger Limited has upgraded its full-year outlook after reporting a record net profit after tax of $120 million for the six months to the end of December 2010.
The company told the Australian Securities Exchange today that the result was the product of more settled investment markets. Challenger chief executive Dominic Stevens claimed the market’s acceptance of the company’s new annuity products had also contributed.
“We’re very pleased with the result for the half and the improved outlook for the full year,” he said.
Stevens said total life sales were $732 million, and retail life sales had risen 57 per cent to $713 million with more than 28 per cent of these on products introduced in the last 12 months.
Stevens said that given the strength of the trend, the company was upgrading its full-year growth targets to 50 per cent for retail sales and approximately 10 per cent for retail net book growth.
“By 2025 the post-retirement market will be worth more than $1 trillion, and guaranteed income products currently account for only a very small percentage of that market,” he said. “We’ve verified the opportunity for these products, and last night [we] kicked off the next phase of our growth strategy with the launch of a multi-million advertising campaign.”
