Challenger Limited Profit Results, FY Down 43 Percent

Investment manager, Challenger Limited (ASX:CGF) have announced their full year profit results to the Australian sharemarket on Monday.

• Net profit: $148.5 million, down 43 percent year on year.
• Profit is down on the back of a volatile investment environment and re-valued fixed income assets.
• Normalised net profit: $296.8 million, up 20 percent.
• Record sales of life and annuity products. Life: $2.66 billion (up 35 percent, Annuity: $1.95 billion, up 34 percent)
• CGF funds under management to $31 billion. (an increase of 31 percent or $7.4 billion, this was helped by an acquisition of MIR Investment Management)
• Challenger last week reported a possible $110 to $125 million impact to balance sheet from anticipated regulatory changes to capital requirements for financial institutions.
• CGF is Australia's largest annuities provider.
• CGF shares closed lower on the stockmarket at 9 cents at $3.76 per share on Monday (-2.34 percent).
• Challenger has announced a final unfranked dividend of 10.5 cents per share. The ex dividend is at 3/9/2012. This brings the full year dividend distribution to 18 cents. An increase of 9 percent on the previous year.