Challenger Financial has reaffirmed its full-year guidance after a solid first half and the investment manager says it is well-placed to benefit from government superannuation reforms.
Challenger said net profit for the six months to December 31 dropped 14 per cent to $201.5 million, but that decrease was attributed to an asset sale in the prior corresponding period.
Stripping out that one-off gain, underlying profit rose eight per cent to $197 million as record annuity sales of $2.2 billion helped keep the firm on course for full-year operating earnings of between $620 million and $640 million.
Chief executive Brian Benari flagged the possibility of further growth as the government continues to push through reform of the superannuation industry.
"As the superannuation industry pivots towards generating sustainable retirement incomes, supported by the government's reform agenda, we are excellently positioned to meet the needs of the rising wave of retirees," Mr Benari said.
Challenger said there had been substantial progress over the past six months in government policy to facilitate that shift, including the superannuation bill currently being considered by the Senate.
The company lifted its interim dividend one cent to a fully franked 17 cents.
At 1130 AEDT, Challenger shares were down 32 cents, or 2.75 per cent, at $11.32.
CHALLENGER'S FIRST HALF
* Net profit down 14pct to $201.5m
* Normalised net profit up 8.0pct to $196.6m
* Revenue down 9.3pct to $940.7m
* Interim dividend up 1.0 cent to 17.0 cents, fully franked
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