Challenger Limited (ASX: CGF) has delivered a strong set of Challenger 1H26 results, reporting a statutory net profit after tax of $339 million for the first half of the 2026 financial year. The figure represents a 369% increase on the prior corresponding period, driven by investment outperformance across all asset classes in the Life portfolio.
  
Figure 1: Challenger Limited corporate logo representing the company’s brand and financial services operations [Workiva]
Normalised NPAT rose 2% to $229 million in the Challenger financial results 2026 announcement dated 17 February 2026. The Company maintained disciplined expense management while growing earnings across both its Life and Funds Management divisions. Chair described the result as a solid start to FY26 with strong strategic momentum.
Challenger 1H26 Results Reflect Annuity Sales at Record Levels
The Challenger 1H26 results show total Life sales increased 11% to $5.1 billion for the half. Domestic annuity sales surged 37% to $3.1 billion, driven by strong demand for both fixed-term and lifetime annuity products. Offshore reinsurance sales rose 13% to a record $695 million.
Challenger’s annuity book grew 7.4% while the total Life book growth reached 5.8%. The Challenger financial results 2026 reflect continued consumer demand for guaranteed income solutions. Attractive investment opportunities supported term product sales across the domestic market.
Normalised EPS and ROE Both Exceed Prior Period Benchmarks
Normalised basic earnings per share increased 2% to 33.3 cents per share in the Challenger profit increase 2026 announcement. Normalised group return on equity reached 11.4%, sitting 70 basis points above the Company’s target of 10.7%. This marks continued outperformance against the ROE benchmark based on the RBA cash rate plus a 12% margin less tax.
Figure 2: Retirees reviewing financial documents, reflecting demand for retirement income and annuity solutions [Freepik]
The Challenger 1H26 results confirm that the Company remains on track to achieve full-year guidance. Normalised basic EPS guidance for FY26 sits between 66 and 72 cents per share. This assumes a full-year normalised NPAT of $455 million to $495 million.
FUM Rises 3% as Alternatives Capability Expands
Funds Under Managemen increased 3% in the half to $116.2 billion. Group Assets Under Management grew 3% in the half to $128 billion. The Challenger financial results 2026 reflect continued innovation within the Funds Management division.
Fidante acquired a minority stake in London-based Fulcrum Asset Management during the period. This expands Challenger’s alternatives capability and strengthens its ability to meet growing client demand. The Company also launched the Challenger IM LiFTS 1 Notes on ASX as part of a new listed income series.
$1.7 Billion Capital Surplus Supports Dividend and Buy-Back
Challenger Life Company Limited holds a Prescribed Capital Amount ratio of 1.58 times the Australian Prudential Regulation Authority’s minimum regulatory requirement. The Company holds $1.7 billion in capital above APRA’s minimum requirement. This provides financial strength and flexibility to support future growth initiatives.
Figure 3: Investment portfolio analysis and performance tracking illustrating Challenger’s funds management activity [Freepik]
The Challenger profit increase 2026 has supported a fully franked interim dividend of 15.5 cents per share, up 7% on the prior year. This represents a normalised dividend payout ratio of 46.5%, within the Company’s target range of 30% to 50%. Challenger also announced an intention to buy back up to $150 million of shares on-market, subject to market conditions and regulatory approval.
Super Fund and Advice Platform Partnerships Accelerate Distribution
The Challenger 1H26 results include significant partnership milestones across the retirement income sector. Challenger and TAL established a key retirement partnership with Insignia Financial during the first half. The Company also announced a partnership with BT to launch lifetime income solutions on its wealth platform.
Two advice technology platform partnerships were established with IRESS Xplan and Informed Financial Future. These partnerships help advisers incorporate lifetime income stream modelling earlier in the advice journey. With APRA’s updated capital settings coming into effect, the Challenger financial results 2026 position the Company to capture retirement market growth at scale.
Challenger Share Price Performance
According to recent trading data, Challenger shares are priced at $8.220 on 17 February 2026. The stock trades within a 52-week range of $5.220 to $9.600 per share. Market capitalisation stands at $5.82 billion, reflecting strong investor confidence in the Company’s Challenger profit increase 2026 trajectory.
Figure 4: Challenger share price performance over the past year following the release of 1H26 financial results [ASX]
The interim dividend ex-dividend date falls on 24 February 2026, with a record date of 25 February 2026. Payment of the 2026 interim dividend is scheduled for 24 March 2026. Challenger’s next key date includes Q3 2026 AUM, annuity sales and net flows on 21 April 2026.
FAQ
Q1. What were the key highlights of the Challenger 1H26 results?
Ans. The Challenger 1H26 results showed statutory NPAT rising 369% to $339 million and normalised NPAT up 2% to $229 million. Total Life sales increased 11% to $5.1 billion, with domestic annuity sales surging 37%.
Q2. What is Challenger’s full-year guidance for FY26 based on the Challenger financial results 2026?
Ans. The Challenger financial results 2026 confirm guidance of normalised basic EPS between 66 and 72 cents per share. This assumes a full-year normalised NPAT of $455 million to $495 million.
Q3. What drove the Challenger profit increase 2026?
Ans. The Challenger profit increasein 2026 was driven by record annuity sales, investment outperformance across all Life asset classes and operational efficiency. Offshore reinsurance sales reached a record $695 million during the half.
Q4. What dividend did Challenger declare following the 1H26 results?
Ans. Challenger declared a fully franked interim dividend of 15.5 cents per share, up 7% on the prior year. This represents a normalised payout ratio of 46.5%, within the 30% to 50% target range.
