Challenger Limited · ASX:CGF
Challenger — Macquarie Australia Conference 2019
14 slides from Challenger's conference presentation, May 2, 2019
Slide 1: Macquarie Australia Conference 2019 Presentation
Challenger Limited 02 May 2019 MACQUARIE AUSTRALIA CONFERENCE 2019 PRESENTATION Challenger Limited (ASX:CGF) attaches a copy of the presentation Managing Director and Chief Executive Officer Richard Howes will deliver at 11.15am today at the Macquarie Australia Conference 2019 in Sydney. ENDS About
Slide 2: Macquarie Australia Conference, 2 May 2019
Macquarie Australia Conference 2 May 2019 challenger 22
Slide 3: Our vision and strategy
Our vision and strategy A clear plan for sustainable long-term growth Macquarie Australia Conference 2
Slide 4: Expanding strategic relationship with MS&AD
Expanding strategic relationship with MS&AD Diversifying and increasing access to Japanese market MS Primary annuity relationship • Currently Australian dollar product reinsurance ~A$27bn market cap 41,733 employees • commenced November 2016 Total assets ~A$280bn 5 business domains (as at 30 Septemb
Slide 5: Highly engaged workforce
Highly engaged workforce With a strong risk and compliance culture 1 Employee engagement Global Australian Global High Financial Category Total favourable score National Performance Services norm norm norm 84% Sustainable engagement 84% Sustainable engagement Diversity and flexibility 94% Risk cultu
Slide 6: Fidante Partners capability
Fidante Partners capability Adding new managers and expanding distribution footprint Adding new managers Fidante Partners FUM growth ($bn) • Formed April 2019 60 • Specialist small cap 1 Boutiques formed pre-Dec 2010 boutique sale manager 50 • Experienced and highly rated small cap team • Proven inv
Slide 7: Superannuation system
Superannuation system World class accumulation system with significant retirement savings Not delivering retirees financial comfort World class Significant Not delivering retirees accumulation system retirement savings financial comfort 7 National Seniors Australia survey (April 2019) Contribution r
Slide 8: Ongoing public policy enhancing retirement
Ongoing public policy enhancing retirement Currently underdeveloped – longevity pooling part of the solution 3 Average superannuation balance and drawdown • Retirees self insuring longevity risk For illustrative purposes only • under consuming capital 500,000 1 • ~31% of super balance not consumed 4
Slide 9: Lifetime annuity is a compelling product
Lifetime annuity is a compelling product Simple and good value product • Provides regular and reliable retirement income addressing the needs of retirees • Provides protection from retirement risks • longevity • market • sequencing • inflation 1 • Lifetime annuity IRR ~120 bps above Australian gover
Slide 10: Significant financial advice market disruption
Significant financial advice market disruption Impacting Challenger annuity sales • Challenger sales impacted by Quarterly annuity sales by channel ($m) Growth rate compared to pcp • lower third-party adviser new Domestic +21% -12% -7% client acquisitions Japan -53% -58% -49% $1,192m • adviser churn
Slide 11: Challenger well positioned
Challenger well positioned Market leader – long term fundamentals remain strong • Strong systemic tailwinds including super system growth and ageing demographics • Two complementary businesses both with leading market positions • Leading retirement incomes brand and recognised as industry thought le
Slide 12: Appendix
Appendix Additional background information Macquarie Australia Conference
Slide 13: Government enhancing post-retirement phase
Government enhancing post-retirement phase New means test rules for lifetime income products from 1 July 2019 Assets pension test Income pension test Example - $100,000 lifetime income stream purchase price at age 65 Example - $100,000 lifetime income stream paying $7,000 per year 100,000 7,500 7,00
Slide 14: Important note
Important note This presentation was prepared for the purpose of a briefing to equity analysts and certain wholesale investors on 2 May 2019. The material in this presentation is general background information about Challenger Limited activities and is current at the date of this presentation. It is