Challenger says its life business “maintained its momentum” in the first half, contributing to increased earnings at the investment group.

The group achieved a 12% rise in normalised net profit after tax to $225 million for the six months to December.

The life business delivered a 7% increase in normalised net profit after tax to $225 million, and retail lifetime annuity sales rose 24% to a record $583 million.

Challenger says growth in assets under management and a better cash operating earnings margin drove life profits.

“The life business maintained its momentum with record retail lifetime and Japanese annuity sales contributing to total life sales of $4.6 billion,” MD and CEO Nick Hamilton said. “Our focus on longer-duration sales has lengthened the tenor of our liabilities and is supporting stronger returns.”

Challenge says it remains on track for a normalised net profit after tax of $440-$480 million this financial year.

Last financial year, it earned $608 million in normalised net profit before tax, up 17% and exceeding the group’s $555-$605 million guidance.

From this financial year, it will report key metrics including earnings on a post-tax basis.