Distribution helps drive Challenger profit
Challenger Limited focus on diversifying its distribution channels has seen the company post another solid first half profit.
The company’s distribution efforts will see its annuity products being offered on the BT Panorama platform during the June quarter of this year.
The company announced a record normalised net profit before tax of $275 million, up eight per cent, albeit that statutory net profit after tax was down three per cent to $195 million.
Commenting on the result, Challenger chief executive, Brian Benari, said the result had been delivered off the back of 18 per cent growth in assets under management.
“In these results we are seeing the benefits from diversifying our distribution channels and product offering, which is driving increased sales,” he said. “At the same time, we are reweighting to longer-term business, which is reducing our proportion of annuities reaching maturity and increasing our return to shareholders. This is underpinning our future growth.”
Benari said there had been particularly strong demand for products such as the company’s Challenger Guaranteed Index Plus Fund, which was targeted at Australian superannuation funds and its CarePlus aged care annuity.
The company said it was continuing to focus on expanding its distribution footprint, noting that it had last year launched its range of annuity products via AMP’s adviser portal to their retail and corporate superannuation clients.
It said the launch of Challenger annuities on the BT Panorama platform was targeted for the June quarter of this year.
Benari said company was well positioned to deliver on its growth strategy, with new product offerings, expanded distribution networks and highly efficient operations.
The board declared an interim dividend of 17.5 cents per share.
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