Challenger (CGF) FY15 Financial Results: There is a lot to be happy about
Outlook: Life COE guidance for FY16 is strong. The company guidance is for FY16 range of $585m - $595m Life COE. However, this includes a reduced normalised growth assumption for equities from 6.0% to 4.5% which reduced guidance by ~$13m. Despite this, it still compares well to consensus. On a like for like basis excluding the revised normalised growth assumption, consensus was at $589m, company guidance would be at ~$602m and our top of the market estimate was $607m. This implies that the company expects book growth and margins to remain strong in FY16. Overall a strong result, a lot to be happy about. In reinforces our view that CGF remains a top pick in the space. Don’t expect much change to our top of the market estimates. Read our full summary here: http://www.bellpotter.com.au/topnavigation/research.aspx?id=1814
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