Challenger has reaffirmed its full-year earnings guidance after reporting a 4 per cent increase in first-quarter sales, reaching $2.5 billion. The company noted significant gains in both lifetime and fixed-term annuity sales. Lifetime annuity sales experienced a 16 per cent year-on-year increase, amounting to $320 million, while fixed-term annuity sales rose by 29 per cent to $1.1 billion. Challenger is a financial services firm that specialises in providing retirement income products. The company aims to provide financial security for Australians during their retirement years.
The retirement income provider reiterated its FY26 normalised earnings per share guidance range of between 66¢ and 72¢. Challenger’s chief executive, Nick Hamilton, commented on the strong sales performance across the company’s retirement income products, attributing it to the increasing demand for guaranteed income and the growing number of Australians entering retirement and aged care.
Hamilton further explained that fixed-term annuity sales were positively impacted by several new mandates secured with superannuation funds. These new mandates helped to offset increased competition observed in the retail term market. Despite the competitive pressures, Challenger stated they remain disciplined in pricing shorter-term annuities to maintain profitability and market share.
Challenger’s first-quarter performance reflects a positive trajectory, underpinned by strategic partnerships and strong demand for its retirement income solutions. The company’s focus on providing guaranteed income streams positions it well to capitalise on the evolving needs of the Australian retirement market.
