The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Kieren Chidgey - Jarden Limited, Research Division - Analyst
: Just a couple of questions, if I could, starting with the ROE target. You're at 11.5% in first half '21. And Andrew, I think you flagged a 20 to 30 basis
point uplift as you fully redeploy into higher-returning classes in the second half of '20 in terms of Life margins. As on my numbers, that will put
you on track for around 13%, so still shy of the 14% group target.
So just wondering what else sort of is required across the group to get you back in that target range at group level on ROE. Is it just the full run rate
once you've fully deployed that capital? Or are there other things actually required to boost you?
Question: Kieren Chidgey - Jarden Limited, Research Division - Analyst
: Okay. And so the ability to get back to target or above target in '22 at this stage, you're saying it's more reflective of where credit spreads are at
this juncture?
REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us
consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.
FEBRUARY 08, 2021 / 10:30PM, CGF.AX - Half Year 2021 Challenger Ltd Earnings Call
Question: Kieren Chidgey - Jarden Limited, Research Division - Analyst
: Okay. And second question, and apologies, I might have missed the comment. But sort of related to Japan, obviously, you've done a fair chunk of
your sort of full year minimum agreement with them through first half, probably around 80%. So just interested in comments on sort of full year
basis, whether or not, given they are experiencing higher sales based on your commentary more generally, there's scope to drive that $670 million
this year.
And secondly, given the stronger sales coming out of Japan, where you think the maturity rates on the overall book would hit into '22. I know you
flagged 27% to 28% for this year, but just interested in any commentary beyond that.
Question: Kieren Chidgey - Jarden Limited, Research Division - Analyst
: Just on maturity...
Question: Kieren Chidgey - Jarden Limited, Research Division - Analyst
: Yes, Richard. Yes.
|
