Mr Howes said this tightening regulation had created a “challenging” environment for the company, putting a squeeze on the growth of its domestic retail client base. But he added Challenger had seen significant inflows from institutional clients abroad.
“In our life business, strong Japanese and Australian institutional sales have offset lower domestic sales,” he said.
Challenger’s Life arm, selling annuities, grew by 3 per cent in earnings with total sales growing by 15 per cent to $3.1 billion.
Since the release of the results, Challenger’s share price climbed by 11.72 per cent just after midday sitting at $9.92.