Slide 1: Financial Results 2026
challenger @ Financial Results 2026 o «= n 18 August 2026 Life. Well lived
Slide 2: Acknowledgement of country
Acknowledgement of country Challenger acknowledges the Traditional Owners of Country throughout Australia and we pay our respects to Elders past and present. We recognise the continuing connection that Aboriginal and Torres Strait Islander peoples have to this land and acknowledge their unique and r
Slide 3: Overview
1 Business and strategy update Nick Hamilton – Managing Director and Chief Executive Officer Overview 2 Financial results and outlook Alex Bell – Chief Financial Officer 3 Looking ahead Nick Hamilton – Managing Director and Chief Executive Officer
Slide 4: Business and strategy update
1 Business and strategy update Nick Hamilton Managing Director and Chief Executive Officer
Slide 5: Key points
01 02 03 Key Financial strength – earnings growth, Capital flexibility – strong capital position, Enabling growth – winning key retirement points operational efficiency, ordinary dividend partnerships, advice annuity sales growth, growth and special integration, investing in delivering returns for d
Slide 6: FY26 financial performance
FY26 financial performance Delivering returns for shareholders F I N AN C I AL P E R F O R M AN C E S H AR E H O L D E R O U T C O M E S C AP I TAL F L E X I B I L I T Y 68.1cps 3% 11.6% 1.38x Normalised EPS Normalised ROE1 CLC PCA Ratio3 Above FY26 target2 $ 506m 163% 31.5cps 7% 1.50x Pro-forma CLC
Slide 7: Overview of Challenger
Overview of Challenger 40 years serving retirement needs to individuals and institutions (ASX:CGF)1 Income for Solutions for Strategic Individuals Institutions Ventures #1 One of Challenger Annuity- Strategic Lifetime annuities Australian Australia’s Backed Notes (CABN) ventures aligned retirement F
Slide 8: Operating environment
Operating environment Delivering through the cycle – discipline, capital resilience and flexibility to grow Investment Markets Capital Standards Demand for Income Shareholder outcomes • Credit spreads tight • Financial resilience • Retirement system opening • Higher for longer rates • Less capital i
Slide 9: FY26 operating highlights
FY26 operating highlights Delivering against our strategic priorities R E T I R E M E N T L E AD E R INVESTMENT EXCELLENCE TAL E N T E D T E AM AN D C APAB I L I T I E S 600k $ 10.4bn Calix Re Super customers aged 65+ years Origination volumes Offshore reinsurance platform New retirement partnership
Slide 10: Setting our sights on growth
Setting our sights on growth Accelerating and scaling our platform by 2030 through diversified distribution channels Balance sheet growth supported by FY16 FY21 FY26 multi-channel strategy FY30 Advised Australian Retail Retirement advice technology | Platform partnerships Institutional Income & Rein
Slide 11: Financial results and outlook
2 Financial results and outlook Alex Bell Chief Financial Officer
Slide 12: FY26 financial performance
FY26 financial performance Delivering shareholder returns | Strong statutory NPAT performance Profitability Returns Normalised NPAT ($m) Normalised EPS (cps) Statutory NPAT ($m) Normalised ROE after tax (%) Ordinary Dividend (cps) $468m +3% 68.1 cps +3% $506m +163% 11.6% +70 bps above target1 31.5 c
Slide 13: Earnings drivers
Earnings drivers Delivering earnings growth and operational efficiency Income ($m) Expenses ($m) Cost to Income Ratio (%) $995m +2% $319m +1% 32.1% -20bps 33.8% 978 995 927 Cost to income target 2 $5m 32.3% Corporate 2 $319m 32.1% 32% to 34% 2 $316m other income 188 189 174 ($2m) FM net fee income L
Slide 14: Life COE margin
Life COE margin Strong 2H26 NCOE margin performance | Tight credit spread environment continues FY26 Total return by COE margin (%) asset class FY26 3.06% -13bps 3.19% 3.20% 3.26% 3.17% 3.12% 3.06% 3.04% 3.11% 10.8% 10.9% 2.95% 9.6% 9.3% 8.6% 7.3% FY24 FY25 FY26 1H24 2H24 1H25 2H25 1H26 2H26 6.5% 6.
Slide 15: Challenger sales, flows and AUM
Challenger sales, flows and AUM Strong book growth driven by annuity sales and third-party flows Life sales Third Party Asset Management flows & AUM Third Party Assets $9.6bn +12% $0.4bn net flows $4.1bn +11% +10.7% Annuity book growth $4.1bn Total net flows $0.4bn +14.4% 3yr+ annuity sales1 $0.7bn
Slide 16: Life assets under management
Life assets under management Balance sheet growth driven by book growth and retained earnings | Asset allocation is a store of capital Investment Assets1 Prescribed Capital Amount (PCA) $26.6bn +4% $3.0bn $26.6bn $26.6bn $3.0bn $25.6bn $24.7bn 2% Equity and infrastructure, unchanged 2% 2% 7% Asset a
Slide 17: Capital resilience
Capital resilience Capital remains significantly above regulatory requirements even in a stressed scenario | Adopting a more conservative risk appetite I L L U S T R ATI V E E X A M P L E O F H O W C A P I TA L P O S I TI O N R E S P O N D S TO A M A R K E T S T R E S S E V E N T 1, 2 Old capital st
Slide 18: Capacity for Insurance book growth
Capacity for Insurance book growth Ability to support materially higher levels of Insurance book growth while maintaining strong capital position 30 June 2026 Immediate capacity for book Medium-term capacity for Illustrative example1 pro forma3 growth (+30%) book growth (+80%) Growth in Insurance bo
Slide 19: Fidante and Channel Capital merger
Fidante and Channel Capital merger Transaction overview and economics • 45% equity stake in Fidante/Channel merged entity • $172m cash payments MergeCo diversified financial profile • $60m on completion Transaction details • $25m service fees to be received over 2 years • $87m earn-out over 4 years
Slide 20: Delivering shareholder value
Delivering shareholder value Long-term capital management FY26 FY27 Business LiFTS 2 and ORGANIC GROWTH + 9.2% LiFTS CABN1 program operational capability Invest in core businesses Life book New New New growth solutions partnerships solutions DIVIDENDS 31.5cps 1.5cps 65% to 75% Seeking to grow divide
Slide 21: New reporting framework and metrics
New reporting framework and metrics Building blocks of shareholder value Core earnings Shareholder Spread Fee-Related Investment outcomes Income Income Returns Stable and steady growth High growth Positive through the cycle Lower capital volatility Capital light Investment excellence In-year guidanc
Slide 22: FY27 guidance
FY27 guidance Strong EPS growth | Core earnings removes normalised accruals for income and capital growth FY27 Core Basic Earnings Per Share (EPS) Reconciliation of Normalised EPS to Core EPS (cps) • Normalised accruals for income and capital growth 17.4cps • Items included in Investment Returns rat
Slide 23: Medium-term outlook
Medium-term outlook Through the cycle targets 8% to 10% 12% to 14% 65% to 75% 1.15x to 1.35x CAGR over 3 to 5 years Midpoint equivalent to 46% of normalised basic EPS Operating EPS Operating ROE Dividend payout CLC PCA growth (after-tax) ratio1 ratio2 1. Dividend payout ratio represents dividend per
Slide 24: Investment thesis
Investment thesis Positioned to convert long-term demographic opportunity into sustainable earnings growth and attractive shareholder returns Structural growth and market Asset origination Capital strength Scalable platform Higher leadership position capability and flexibility for growth quality ear
Slide 25: Looking ahead
3 Looking ahead Nick Hamilton Managing Director and Chief Executive Officer
Slide 26: Organisational priorities
Organisational priorities Delivery and execution aligned to our strategy OUR STRATEGIC PILLARS Retirement Investment Talented team leader excellence and capability Broaden customer access Superior outcomes and Outstanding skills and across multiple channels financial resilience ways of working FY27
Slide 27: Key points
01 02 03 Key Financial strength – earnings growth, Capital flexibility – strong capital position, Enabling growth – winning key retirement points operational efficiency, ordinary dividend partnerships, advice annuity sales growth, growth and special integration, investing in delivering returns for d
Slide 28: Appendix
Appendix challenger 43
Slide 29: Appendix A - Capital resilience
Appendix A - Capital resilience Capital position is significantly more resilient to market shocks under new standards Risk of management actions needing to be taken is materially reduced I L L U S T R ATI V E E X A M P L E O F H O W C A P I TA L P O S I TI O N R E S P O N D S TO A M A R K E T S T R
Slide 30: Appendix B - Assumptions
Appendix B - Assumptions Capital resilience illustrative example Item Comment Asset Portfolio No changes to actual asset portfolio at 30 June 2026 (including no allowance for any potential return of capital) Aligned to New Standards Capital Standards Assumed that criteria to apply Advanced Illiquidi
Slide 31: Appendix C - Assumptions
Appendix C - Assumptions Assumed application of new capital standards as at 30 June 2026 Item Comment Standard Illiquidity Premium Illiquidity Premium: 0.26% (Yrs 0-10); 0.20% (Yr 10+) Advanced Illiquidity Premium Bloomberg US Corporate Statistics Index (LUACSTAT) Reference Index Credit spread = 0.7
Slide 32: Important note
Important note The material in this presentation is general background information about Challenger Limited This document may contain certain ‘forward-looking statements’. The words ‘forecast’, ‘expect’, ‘guidance’, group’s activities and is current at the date of this presentation. It is informatio