CGF +19.29%: Reported a strong 1Q27, with strong sales and annuity flows, with the update coming alongside an $11.80 per share offer from Daiichi Life’s for the remaining 79.5% of the company, a ~20% premium to Friday’s closing price.
Key details:
- Total sales: $4.4bn, up 52% y/y
- Annuity sales: $2.8bn, up 72% y/y, supported by strong fixed-term and offshore reinsurance demand.
- Assets under management (AUM): $31.9bn, up 5% for the quarter.
- Net annuity flows: $1.1bn, with total net flows of $1.8bn across the broader business.
The operating update reinforces the underlying appeal of Challenger, with demand for guaranteed retirement income supporting strong annuity sales and book growth. With M&A activity running hot and corporates hunting for quality businesses at attractive prices, we wouldn’t be surprised to see further interest in CGF. Challenger has the retirement income platform and growth runway that strategic buyers are looking for, so the current offer may not be the end of the story, though we’d be reticent to chase the share price higher right now.
MM is cautiously bullish CGF
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