MARKET RELEASE

SHARE BUY-BACK UPDATE 26 November 2012, Sydney - Challenger Limited (ASX: CGF) announces that it intends to increase activity under its ongoing on-market share buy-back, targeting an investment of $50 million over the next six months.

This investment in the share buy-back represents approximately 31 per cent of Challenger's shares on issue and will commence immediately. The ongoing on-market share buy-back does not require shareholder approval as it continues to be undertaken within the 10/12 limit (i.e. buy-back is limited to 10% of the smallest number of shares on issue in the previous 12 months)2.
Challenger CEO Mr Benari said "we are very focused on maximising long-term shareholder returns. The investment in the on-market share buy-back is an accretive transaction for shareholders which will benefit both earnings per share and return on capital."
Challenger Life Company Limited (CLC) is well capitalised with $719 million of regulatory capital above minimum requirements at 30 June 2012. Since 30 June 2012, CLC's regulatory capital has increased as a result of normalised operating profits and positive investment experience, net of dividends.

ENDS


1 Based on the current Challenger share price of $3.19. The buy-back is subject to market conditions at the time of purchasing the shares.

2 Refer to the Appendix 3C released to the ASX on 18 November 2011.

Further enquiry: Stuart Kingham, Head of Investor Relations, Challenger Limited, 02 9994 7125

Stuart Barton, General Manager of Marketing and Communications, Challenger Limited, 02 9994 7008

Challenger Limited A.B.N 85 106 842 371

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