Challenger has recorded stronger first-half results, supported by its core life business.

Statutory net profit after tax for the six months to December grew 80% compared with a year earlier to $56 million, and normalised net profit before tax increased 16% to $290 million.

The life business, Challenger’s biggest by revenue, performed well in the half: earnings before interest and tax rose 15% to $302 million.

“Challenger delivered a strong performance ... and the momentum across our life business highlights our expertise in meeting Australians’ growing demand for secure, guaranteed income,” MD and CEO Nick Hamilton said. “We have an exciting year ahead. Our business is performing strongly, our strategic initiatives are on track and our transformation program will support further growth.”

He says new business annuity sales reached a record $1.9 billion during the period, which contributed to life sales of $5.3 billion.

“The result also demonstrates our focus on driving more profitable, longer-duration business, with 90% of new business annuity sales for terms of two years or more. This in turn is extending the tenor of our life book, which will support higher, longer-term profitability.”

Challenger says the life business is making significant progress building new institutional partnerships with superannuation funds, as the sector focuses on supporting members’ needs through more “comprehensive” retirement income solutions.

“This provides a significant growth opportunity for Challenger as trustees and funds seek trusted partners to deliver a range of derisking solutions,” the business said.

Challenger says the business is on track to achieve normalised net profit before tax of $555-605 million and it expects the result to be in the top half of the guidance.