Full Year 2022 Challenger Ltd Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Kieren Chidgey - Jarden Limited, Research Division - Analyst : A couple of questions if I can. Maybe starting on the Bank, Nick, I'm just hoping you can unpack a little bit to tell what exactly has changed over the last 12 months since you took ownership of the Bank. Is it competitive environment? Is it the additional investments in systems and technology? Just a little bit more clarity around sort of, I guess, what has changed the strategic outlook for the Bank would be useful.

Question: Kieren Chidgey - Jarden Limited, Research Division - Analyst : Okay. And the -- I mean, how long do you expect the strategic review to take? And I mean, you said it's business as usual for the Bank in the interim, but I guess, we had expected a ramp-up in activity in the Bank over the course of '23. Is that on hold?

Question: Kieren Chidgey - Jarden Limited, Research Division - Analyst : Okay. And just a point of clarity on the Bank guidance of negative 10%. Does that include impairments for '23. Is that a normalized impairment number?

Question: Kieren Chidgey - Jarden Limited, Research Division - Analyst : Okay. Secondly, just on the Life business maturity. Obviously, quite a step-up, and I think you've explained why that's the case in terms of the mix of sales that occurred sort of over the last 12 months being much shorter duration. But as you guided on Slide 8, on a quarterly basis, that is starting to reverse in terms of seeing more sales above the 1-year duration. So this 34% maturity rate, how transitional is the '23 year in regard to maturity rising? Can you give us a bit of feeling for where you see that trending sort of more over the medium term?

Question: Kieren Chidgey - Jarden Limited, Research Division - Analyst : Okay. And the experience so far, I know we're sort of only halfway through first quarter of '23. But can you just give us a feel for sort if that experience has continued and the pickup in retail annuity sales is persisting?

Question: Kieren Chidgey - Jarden Limited, Research Division - Analyst : Okay. And then just a last question on costs. You're guiding to 5% to 6%. Right. So I'm just wondering what sort of impulse the SimCorp and Apollo JVs are likely to have within that in '23?

Question: Kieren Chidgey - Jarden Limited, Research Division - Analyst : Are they material costs then, Rachel, in terms of -- what do they add to the cost growth for the group?

Question: Kieren Chidgey - Jarden Limited, Research Division - Analyst : Just dollars.

Question: Andy Chuk - Macquarie Research - Analyst : The first question is just around the COE margin again in credit spread. So you've outlined that the portfolio expanded credit spread by 110 basis points in the second half, yet the credit spread declined 2 basis points. So can you just provide some color on why we're not seeing that margin expansion come through? And when the credit spreads are (inaudible)? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 16, 2022 / 12:30AM, CGF.AX - Full Year 2022 Challenger Ltd Earnings Call

Question: Andy Chuk - Macquarie Research - Analyst : Okay. Got it. And just one quick question on the new business tenor. Can I confirm what that was in second half '22?