Challenger Financial Services Group has returned to profit from recent losses and upgraded its full-year cash earnings guidance for its key earning life insurance arm because of improved investment markets.

Challenger on Monday reported a net profit of $176.7 million for the six months to December 31, which compared with a net loss of $107.9 million in the first half of 2008/09.

A contraction in debt spreads and strong sales of annuities by Challenger Life drove the result.

Normalised net profit, which removes unrealised asset declines and cashflow, rose 9.4 per cent to $116 million, from the previous corresponding period.

Challenger said it would pay an interim dividend of six cents per share, up 20 per cent on the previous corresponding period.
Full Story

Challenger Financial Services Group Ltd has made a bottom line annual loss but says it’s well funded and poised to add to its investment management capabilities.

The net loss for the 12 months ended June 30 was $90.7 million, which was worse than the loss of $44.2 million recorded in the previous year.

However, normalised net profit, which excludes mark-to-market movements and significant items, was $218.9 million, up 0.5 per cent.

“We have come through the toughest part of the global financial crisis (and) our cash earnings continue to improve,” chief executive Dominic Stevens said
Full Story

Challenger Financial Services Group Ltd has reported a $107.9 million net loss for the first half after the funds manager suffered declines in the value of its investments because of the global financial crisis.

The net loss for the six months to December compared with a profit of $95.7 million in the previous corresponding period, Sydney-based Challenger said in a statement on Monday.

But the company’s normalised net profit, which excludes mark to market movements of some investments, gained 3.9 per cent to $105.9 million as Challenger succeeded in cutting costs to offset the reduction in funds under management.
Full Story

The prudential regulator has warned the big banks to scrutinise their overall loan exposure to financial companies and their satellite funds as turmoil continues on global markets.

The Australian Prudential Regulation Authority (APRA) is concerned the banks may be treating loans to companies such as Macquarie Group, Babcock & Brown and Challenger Financial and their listed funds as separate exposures, as this could allow the banks to avoid reporting them to the regulator, The Australian Financial Review reports.
Full Story

Challenger Financial Services Group Ltd chief executive Mike Tilley surprised the market today by resigning less than a year after his contract was extended until 2011, as the group reported an annual loss.

Mr Tilley, who became chief executive in 2004, will get a $1.75 million termination payment and be replaced by deputy managing director Dominic Stevens from September 1.
Full Story

Challenger Financial Services Group Ltd said it would buy up to 10 per cent of its issued capital, currently worth $130 million on the market, giving its battered shares a boost.

Full Story