Full Year 2024 Challenger Ltd Earnings Call Transcript
Key Points
- Challenger Ltd (CFIGF) recorded a strong financial performance with a group normalized net profit before tax of $608 million, exceeding the top end of their guidance range.
- Assets under management reached $127 billion, reflecting a 21% increase, driven by strong institutional net flows.
- The Life business achieved high-quality sales of $9.1 billion, with 88% of new business annuity sales for terms of 2 years or more.
- The company has a strong capital position, holding 1.67 times the minimum regulatory capital requirement, ensuring balance sheet resilience.
- Challenger Ltd (CFIGF) declared a fully franked full-year dividend of $0.265 per share, a 10% increase, reflecting confidence in their business outlook.
- Statutory net profit after tax decreased by 24% to $130 million, impacted by non-cash revaluations of the property portfolio and accounting mismatches under AASB 17.
- Funds Management EBIT declined by 11% to $55 million due to ongoing changes in business mix and large retail outflows.
- The net income margin for Funds Management fell by 240 basis points to 16.4%, reflecting the impact of lower-margin institutional mandates.
- Group expenses increased due to investments in brand initiatives, higher staff costs, and investment administration inflation, despite a 1% decrease in overall expenses.
- The company experienced a pretax loss of $119 million in asset experience due to lower property valuations, particularly in the office portfolio.
Good morning everybody and welcome to those who attended in person and those attended online Challenger's 2024 full year results briefing. Chen, Challenger's General Manager of Investor Relations. We're coming to you today from five Martin Place in Sydney.
Before we begin, I would like to acknowledge the Gadigal people of the Eora Nation, traditional custodians of the land on which we are hosting this event today; and I pay my respect to the Elders past, present, and emerging.
Today's presentation will be followed by a question-and-answer session. You can ask a question either in person via the room, via the online portal or the telephone. Today's presentation will be provided by our CEO, Nick Hamilton; and Chief Financial Officer, Alex Bell.
I'll now pass over to Nick to get us underway.
Good morning, and thank you, Mark. So, today, as Mark noted, I'm joined by our CFO, Alex Bell, to deliver the 2024
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