Challenger says it enjoyed “momentum” in the first quarter and remains on track for a normalised net profit after tax of $440-$480 million this financial year, as previously flagged.

Overall life sales fell 14% to $2.4 billion when incorporating the impact of a $619 million group lifetime annuity policy win in the first quarter of the previous year. Excluding this, life sales grew 10%, driven partly by higher retail lifetime annuity sales.

“We have maintained momentum in the first quarter, with a strong sales performance across our longer-duration lifetime and Japanese annuity products and Challenger Index Plus,” CEO and MD Nick Hamilton said. “Challenger continues to execute a range of strategic initiatives that will strengthen and broaden the business.”

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

It says from this financial year, it will reference key metrics including earnings on a post-tax basis.