CGF –8.97%: We’ve been consistently cautious on CGF given the complexity in their book that underpins the annuity liabilities, and today was another reminder of why this stance remains on point, with lower margins hurting todays result;
- 1H25 Revenue $1.57 billion was up +4.4% yoy
- 1H25 underlying net profit after tax of $225.2 million was +12% yoy slightly below consensus
- Normalized CoE margin on its life division of 3.11% versus consensus of 3.25%
The margin issue in life was particularly disappointing given this is an area they have actively been addressing via a longer duration sales strategy.
Guidance was still on point with CGF still seeing normalized net profit after tax $440-$480 million with current consensus at the mid-point of the range.
- We see no reason to second guess when CGF will break out of its 2.5-year trading range.
MM remains neutral at best on CGF
Add To Hit List
