Recent Insider Transactions • May 25
MD, CEO & Director recently sold €675k worth of stock On the 18th of May, Nicolas Hamilton sold around 120k shares on-market at roughly €5.63 per share. This transaction amounted to 15% of their direct individual holding at the time of the trade. In the last 3 months, they made an even bigger sale worth €894k. Nicolas has been a net seller over the last 12 months, reducing personal holdings by €1.6m. Annonce • Feb 17
Challenger Limited Announces Interim Dividend for the Year Ended 31 December 2025, Payable on 24 March 2026 Challenger Limited announced the 100% franked interim dividend of 15.5 cents (2024 interim: 14.5 cents per share) per share for the year ended 31 December 2025, payable on 24 March 2026. Ex-dividend date is on 24 February 2026 with Record date on 25 February 2026. Annonce • Dec 17
Challenger Limited, Annual General Meeting, Oct 29, 2026 Challenger Limited, Annual General Meeting, Oct 29, 2026. Annonce • Oct 16
Challenger Limited Reaffirms Earnings Guidance for the Year 2026 Challenger Limited reaffirmed earnings guidance for the year 2026. For the year, the company expects normalised basic EPS guidance range of between 66 and 72 cents per share. Annonce • Apr 17
Challenger Limited Tightens Earnings Guidance for the Fiscal Year 2025 Challenger Limited tightened earnings guidance for the fiscal year 2025. For the year, the company has tightened its normalised net profit after tax guidance to a range of between $450 million and $465 million, with the mid-point of the range representing 10% growth on FY24. Annonce • Apr 01
Challenger Limited Announces Resignation of Hiroyuki Iioka as Alternate Director to Mr. Masahiko Kobayashi, Effective on 31 March 2025 Mr. Hiroyuki Iioka has notified Challenger Limited of his resignation as Alternate Director to Mr. Masahiko Kobayashi effective on 31 March 2025 following his retirement on the same date from his position at MS&AD Insurance Group
Holdings Inc. Annonce • Oct 24
Challenger Limited Announces Full Year Dividend for 2024 Reflecting the business's strong financial performance, the Board of Challenger Limited determined a full year dividend of $0.265 per share, an increase of 10% on last year. Annonce • Sep 20
Matthew Michelini Steps Down from Challenger Limited Board Challenger Limited announced that Mr. Matthew Michelini has stepped down as Apollo Global Asset Management's representative on the Challenger Limited Board. The resignation follows the reduction in Apollo's ownership in Challenger, which has fallen below the previously disclosed condition for Apollo to hold a minimum of 15% of issued capital to maintain its seat on the Challenger Limited Board. Mr. Michelini's resignation is effective immediately. Valuation Update With 7 Day Price Move • Sep 09
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to €3.54, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 11x in the Diversified Financial industry in Germany. Total returns to shareholders of 1.8% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at €5.62 per share. New Risk • Aug 14
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 1.1x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (1.1x net interest cover). Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (4.6% net profit margin). Buy Or Sell Opportunity • Jul 05
Now 22% undervalued after recent price drop Over the last 90 days, the stock has fallen 2.4% to €4.04. The fair value is estimated to be €5.17, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 18% over the last 3 years. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to decline by 16% per annum. Earnings are forecast to grow by 14% per annum over the same time period. Buy Or Sell Opportunity • May 22
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 10% to €3.68. The fair value is estimated to be €4.64, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 18% over the last 3 years. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to decline by 21% per annum. Earnings are forecast to grow by 14% per annum over the same time period. Buy Or Sell Opportunity • May 02
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 2.6% to €3.74. The fair value is estimated to be €4.68, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 18% over the last 3 years. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to decline by 21% per annum. Earnings are forecast to grow by 14% per annum over the same time period. Annonce • Apr 30
Heartland Group Holdings Limited (NZSE:HGH) completed the acquisition of Challenger Bank Limited from Challenger Limited (ASX:CGF) Heartland Group Holdings Limited (NZSE:HGH) signed a conditional share purchase agreement for the purchase of Challenger Bank Limited from Challenger Limited (ASX:CGF) for AUD 36 million on October 20, 2022. Upon completion Heartland’s existing Reverse Mortgage and Livestock businesses in Australia will be transferred to sit in or under Challenger Bank. For regulatory reasons, Heartland will be required to hold Challenger Bank through an Australian incorporated non-operating holding company (NOHC) which is approved and regulated by the Australian Prudential Regulatory Authority. Heartland’s intention is to cover the costs of the acquisition through existing resources. The share purchase agreement is subject to obtaining the requisite regulatory approvals in Australia and New Zealand. Corrs Chambers Westgarth acted as legal advisor, Jarden Partners Limited acted as financial advisor and Deloitte & Touche Netherlands acted as accountant to Heartland Group Holdings Limited. Deal is expected to settle in 2H23. In April 2023, Challenger received approval from APRA to release AUD 50 million of excess Bank capital, which was injected into Challenger Life. The remaining excess capital of approximately AUD 40 million is expected, subject to regulatory approvals in Australia and New Zealand, to be returned
to Challenger prior to or on completion of the sale providing additional financial flexibility to support growth in the Life business. As of August 15, 2023, the transaction is expected to complete in H1, 2024. As of April 8, 2024
Challenger Bank Limited has received indictive approval from Australian Prudential Regulation Authority and the Reserve Bank of New Zealand subject to Heartland receiving final regulatory approvals from APRA and the RBNZ and is expected to complete by April 30, 2024.
Heartland Group Holdings Limited (NZSE:HGH) completed the acquisition of Challenger Bank Limited from Challenger Limited (ASX:CGF) on April 30, 2024. Declared Dividend • Feb 15
First half dividend of AU$0.13 announced Shareholders will receive a dividend of AU$0.13. Ex-date: 20th February 2024 Payment date: 19th March 2024 Dividend yield will be 4.8%, which is lower than the industry average of 6.4%. Sustainability & Growth Dividend is covered by both earnings (54% earnings payout ratio) and cash flows (35% cash payout ratio). The dividend has increased by an average of 2.7% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 53% over the next 3 years, which should provide support to the dividend and adequate earnings cover. New Risk • Feb 14
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 1.6x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (1.6x net interest cover). Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (11% net profit margin). Annonce • Feb 13
Challenger Limited Declares Interim Dividend for the Six Months Ended 31 December 2023, Payable on 19 March 2024 The Challenger Board has declared a fully franked interim dividend of 13.0 cents for the six months ended 31 December 2023 compared to 12.00 cents paid for the same period a year ago. Record date is 21 February 2022. Ex-dividend date is 20 February 2024. The dividend will be paid on 19 March 2024. Buying Opportunity • Dec 06
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 4.9%. The fair value is estimated to be €4.35, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 25% over the last 3 years. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to decline by 17% per annum. Earnings is forecast to grow by 14% per annum over the same time period. Annonce • Dec 01
Challenger Limited Announces Quarterly Dividend Ended February 26, 2024, Payable on February 25, 2024 Challenger Limited announced dividend on CAP NOTE 3-BBSW+4.60% PERP NON-CUM RED T-05-26 of AUD 1.57000000 relates to a period of one quarter ended February 25, 2024. Record Date is February 16, 2023. Ex Date is February 15, 2024. Payment Date is February 26, 2024. Annonce • Nov 11
Challenger Limited Appoints Matthew Michelini as Director Challenger Limited appointed Matthew Michelini as director, Date of appointment is 9 November 2023. Annonce • Nov 09
Challenger Limited and Challenger Life Company Limited Announce the Appointment of Lisa Gray as Independent Non-Executive Director, Effective 9 November 2023 Challenger Limited announced the appointment of Lisa Gray as an independent Non-Executive Director of both Challenger Limited and Challenger Life Company Limited, effective from 9 November 2023. Lisa Gray has over 30 years' experience in leading large businesses across banking, investment management, superannuation, insurance and wealth management. She is an experienced non-executive director and currently serves on the boards of ING Bank (Australia) Limited and Victorian Funds Management Corporation. Previously, Ms Gray was Chief Executive of Victorian Funds Management Corporation. She has also held senior executive roles at NAB including Group Executive, Enterprise Services and Transformation, and Group Executive, Personal Banking. Prior to this, Ms Gray served as Chief Executive of MLC Insurance and Managing Director Plum Financial Services. Ms Gray's qualifications include an Advanced Management Program from INSEAD, an MBA from the University of Melbourne and Columbia University (USA), a Graduate Diploma in Management and a Bachelor of Town and Regional Planning (Hons). Ms Gray will stand for election at Challenger's Annual General Meeting in October 2024. Buying Opportunity • Nov 09
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 16%. The fair value is estimated to be €4.23, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 25% over the last 3 years. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to decline by 17% per annum. Earnings is forecast to grow by 14% per annum over the same time period. Buying Opportunity • Oct 20
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 15%. The fair value is estimated to be €4.35, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 25% over the last 3 years. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to decline by 17% per annum. Earnings is forecast to grow by 14% per annum over the same time period. Annonce • Sep 26
Challenger Limited Announces Board Changes Challenger Limited announced that Mr. Steven Gregg will retire from the Board of Challenger Limited at the Annual General Meeting on 26 October 2023. Mr. Gregg has served as an independent Non-executive Director since 2012. In that time, he has served on a range of committees, including as Chair of the Group Audit Committee and as a member of the Group Remuneration, Group Risk and Nomination Committees. Annonce • Sep 14
Challenger Limited Declares Ordinary Dividend for the Six Months Period Ended 30 June 2023, Payable on 20 September 2023 Challenger Limited declared ordinary dividend of AUD 0.12000000 for the six months period ended 30 June 2023. Record Date is on 29 August 2023, Ex date is on 28 August 2023 and Payment date is on 20 September 2023. Upcoming Dividend • Aug 21
Upcoming dividend of AU$0.12 per share at 3.6% yield Eligible shareholders must have bought the stock before 28 August 2023. Payment date: 20 September 2023. Payout ratio is a comfortable 55% and this is well supported by cash flows. Trailing yield: 3.6%. Lower than top quartile of German dividend payers (4.8%). Lower than average of industry peers (6.1%). Buying Opportunity • Aug 17
Now 21% undervalued Over the last 90 days, the stock is up 5.6%. The fair value is estimated to be €4.78, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 25% over the last 3 years. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to decline by 17% per annum. Earnings is forecast to grow by 13% per annum over the same time period. New Risk • Aug 15
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 1.7x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (1.7x net interest cover). Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (12% net profit margin). Reported Earnings • Aug 15
Full year 2023 earnings released: EPS: AU$0.42 (vs AU$0.38 in FY 2022) Full year 2023 results: EPS: AU$0.42 (up from AU$0.38 in FY 2022). Revenue: AU$2.46b (up 389% from FY 2022). Net income: AU$295.5m (up 17% from FY 2022). Profit margin: 12% (down from 50% in FY 2022). The decrease in margin was driven by higher expenses. Revenue is expected to decline by 21% p.a. on average during the next 3 years, while revenues in the Diversified Financial industry in Germany are expected to grow by 8.7%. Over the last 3 years on average, earnings per share has increased by 55% per year but the company’s share price has only increased by 20% per year, which means it is significantly lagging earnings growth. Annonce • Jul 08
Elanor Investors Limited and Elanor Investment Fund completed the acquisition of Challenger Real Estate from Challenger Limited. Elanor Investors Limited and Elanor Investment Fund have entered into agreement to acquire Challenger Real Estate from Challenger Limited for AUD 41.8 million on April 6, 2023. Elanor will issue 27.4 million securities to Challenger as consideration for the acquisition of Challenger Real Estate. The Consideration is subject to claw-back provisions based on certain milestones, including minimum base funds management fee targets. Post-transaction, Challenger will be Elanor’s largest securityholder with an 18.2% holding. Completion is subject to certain conditions, including Elanor Investors Group securityholder approval and other regulatory approvals. The transaction is expected to complete on June 30, 2023.Transaction expected to deliver material earnings accretion in FY24. As of May 29, 2023, Elanor has been advised by Challenger that one third party institutional mandate will not transfer and as such, the Purchase Price for CRE has been reduced to AUD 37.7 million from AUD 41.8 million. EIL will issue up to 24,754,165 EIL shares and procure EFML to issue up to 24,754,165 EIF units to Challenger Limited as consideration for the acquisition of CRE, representing up to 16.7% of ENN Securities on issue. Elanor will become Challenger Life Company Limited’s commercial real estate partner in Australia and New Zealand, managing a AUD 2.7 billion portfolio of real estate assets. EIL and EIF announces a Extraordinary General Meetings of shareholders and unitholders, respectively will be held on June 30, 2023. Moelis Australia Securities Pty Ltd. acted as financial advisor to Elanor Investors Limited.
Elanor Investors Limited and Elanor Investment Fund completed the acquisition of Challenger Real Estate from Challenger Limited on July 7, 2023. Elanor has also secured the transfer of the institutional mandate with a subsidiary of Abu Dhabi Investment Council (ADIC) as part of its acquisition of CRE. As part of the transfer of the ADIC mandate, Challenger has transferred 4.5 million of the 24.8 million new securities in Elanor to ADIC resulting in Challenger’s and ADIC’s holding in Elanor representing approximately 13.6% and 3.0% of total Elanor securities on issue, respectively. Recent Insider Transactions • Apr 28
Independent Non-Executive Chairman recently bought €61k worth of stock On the 21st of April, Duncan West bought around 16k shares on-market at roughly €3.83 per share. This transaction amounted to 62% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. This was Duncan's only on-market trade for the last 12 months. Annonce • Feb 16
Challenger Limited Declares Ordinary Dividend for the Six Months Period Ended 31 December 2022, Payable on 21 March 2023 Challenger Limited declared ordinary dividend of AUD 0.12000000 for the six months period ended 31 December 2022. Record Date is on 22 February 2023, Ex date is on 21 February 2023 and Payment date is on 21 March 2023. Reported Earnings • Feb 16
First half 2023 earnings released: EPS: AU$0.18 (vs AU$0.42 in 1H 2022) First half 2023 results: EPS: AU$0.18 (down from AU$0.42 in 1H 2022). Revenue: AU$1.51b (up 2.2% from 1H 2022). Net income: AU$128.2m (down 55% from 1H 2022). Profit margin: 8.5% (down from 19% in 1H 2022). Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 8.9% growth forecast for the Diversified Financial industry in Germany. Over the last 3 years on average, earnings per share has increased by 34% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. Upcoming Dividend • Aug 22
Upcoming dividend of AU$0.12 per share Eligible shareholders must have bought the stock before 29 August 2022. Payment date: 21 September 2022. Payout ratio is a comfortable 61% and this is well supported by cash flows. Trailing yield: 3.5%. Lower than top quartile of German dividend payers (4.6%). Higher than average of industry peers (2.6%). Reported Earnings • Aug 19
Full year 2022 earnings released: EPS: AU$0.38 (vs AU$0.88 in FY 2021) Full year 2022 results: EPS: AU$0.38 (down from AU$0.88 in FY 2021). Revenue: AU$705.8m (down 80% from FY 2021). Net income: AU$253.7m (down 57% from FY 2021). Profit margin: 36% (up from 17% in FY 2021). The increase in margin was driven by lower expenses. Over the next year, revenue is forecast to grow 21%, compared to a 6.4% growth forecast for the Diversified Financial industry in Germany. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Feb 23
Investor sentiment improved over the past week After last week's 15% share price gain to €4.42, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 11x in the Capital Markets industry in Germany. Total loss to shareholders of 1.3% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at €5.71 per share. Reported Earnings • Feb 19
First half 2022 earnings: EPS in line with analyst expectations despite revenue beat First half 2022 results: EPS: AU$0.42 (up from AU$0.33 in 1H 2021). Revenue: AU$1.47b (up 15% from 1H 2021). Net income: AU$282.0m (up 27% from 1H 2021). Profit margin: 19% (up from 17% in 1H 2021). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 3.8%. Over the next year, revenue is expected to shrink by 77% compared to a 13% growth forecast for the industry in Germany. Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Board Change • Oct 31
High number of new directors Independent Non-Executive Director Heather Smith was the last director to join the board, commencing their role in 2021. Recent Insider Transactions • Sep 28
MD, CEO & Director recently sold €2.1m worth of stock On the 23rd of September, Richard Howes sold around 545k shares on-market at roughly €3.84 per share. This was the largest sale by an insider in the last 3 months. This was Richard's only on-market trade for the last 12 months. Upcoming Dividend • Aug 23
Upcoming dividend of AU$0.10 per share Eligible shareholders must have bought the stock before 30 August 2021. Payment date: 22 September 2021. Trailing yield: 3.3%. Within top quartile of German dividend payers (3.1%). Higher than average of industry peers (2.1%). Reported Earnings • Aug 10
Full year 2021 earnings released: EPS AU$0.88 (vs AU$0.68 loss in FY 2020) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2021 results: Revenue: AU$2.79b (up 55% from FY 2020). Net income: AU$592.3m (up AU$1.01b from FY 2020). Profit margin: 21% (up from net loss in FY 2020). The move to profitability was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 37% per year but the company’s share price has only fallen by 21% per year, which means it has not declined as severely as earnings. Reported Earnings • Feb 10
First half 2021 earnings released: EPS AU$0.33 (vs AU$0.36 in 1H 2020) The company reported a solid first half result with improved earnings and revenues, although profit margins were flat. First half 2021 results: Revenue: AU$1.29b (up 6.3% from 1H 2020). Net income: AU$222.8m (up 1.1% from 1H 2020). Profit margin: 17% (in line with 1H 2020). Over the last 3 years on average, earnings per share has fallen by 76% per year but the company’s share price has only fallen by 17% per year, which means it has not declined as severely as earnings. Is New 90 Day High Low • Feb 06
New 90-day high: €4.50 The company is up 51% from its price of €2.98 on 06 November 2020. The German market is up 15% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Diversified Financial industry, which is up 32% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €4.55 per share. Is New 90 Day High Low • Jan 13
New 90-day high: €4.48 The company is up 71% from its price of €2.62 on 15 October 2020. The German market is up 8.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Diversified Financial industry, which is up 2.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €4.69 per share. Is New 90 Day High Low • Dec 29
New 90-day high: €3.96 The company is up 74% from its price of €2.28 on 30 September 2020. The German market is up 9.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Diversified Financial industry, which is up 8.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €4.27 per share. Is New 90 Day High Low • Dec 05
New 90-day high: €3.58 The company is up 50% from its price of €2.38 on 04 September 2020. The German market is up 5.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Diversified Financial industry, which is down 15% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €3.58 per share. Is New 90 Day High Low • Nov 10
New 90-day high: €3.06 The company is up 29% from its price of €2.38 on 12 August 2020. The German market is flat over the last 90 days, indicating the company outperformed over that time. It also outperformed the Diversified Financial industry, which is down 26% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €6.00 per share. Is New 90 Day High Low • Oct 22
New 90-day high: €2.80 The company is up 4.0% from its price of €2.70 on 24 July 2020. The German market is down 3.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Diversified Financial industry, which is down 15% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €6.40 per share. 
