It also looks like they are making a habit of writing down the value of assets only to book it as income in future years. Mining companies are notorious for the practice.
"In 2H24, a review into UK mortality assumptions was conducted that showed a decline in mortality improvements, with a consequent increase in expected future net inflows to Challenger Life in relation to the UK Life Risk business. This is an economically positive outcome for Challenger Life. Under AASB 17, this increase in expected future inflows is held on the balance sheet within the CSM and released over the life of the underlying contract. However, because the future inflows are valued at current interest rates and the CSM is valued at locked in rates that are on average materially lower, the assumption change (despite being positive economically) results in a material statutory loss, which is the main driver of the $150 million in FY24 that has been reported in Liability Experience. "
CGF Price at posting:
$7.34 Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)