Challenger has posted higher full-year earnings, supported by its core life business.

The investment management group says the 17% rise in normalised net profit before tax to $608 million last financial year exceeded its $555-$605 million guidance.

For this financial year, the business is targeting a normalised net profit after tax of $440-$480 million. It notes that from FY25 it will reference key metrics, including earnings, on a post-tax basis.

The life business booked normalised earnings before interest and tax of $634.2 million in FY24, up 17%. Total life sales reached $9.1 billion, supported by longer-tenor term sales and strong growth in lifetime annuity sales.

“Our life business performed exceptionally well and demonstrates our expertise in providing guaranteed income to more Australians,” CEO and MD Nick Hamilton said. “The success of our strategy to grow longer-tenor, more valuable annuity sales is also supporting stronger returns.

“We are in a very strong position for FY25 and beyond, with momentum across life and funds management. We have a clear growth strategy that is oriented around the customer and leverages our core capabilities, underpinned by a strong balance sheet.”

Life is the biggest division by earnings, followed by funds under management, which made about $54.6 million in normalised earnings before interest and tax.

“In our life business, we have broadened our customer sales channels and strengthened the role we play in the retirement phase of superannuation,” Mr Hamilton said in the annual report.

“We see an opportunity to support superannuation funds to meet their members’ needs into and through retirement.”

Challenger’s life products are distributed via independent financial advisers, financial adviser administrative platforms, superannuation funds and directly.