Challenger's 2017 full-year result saw the wealth management firm post a net profit after tax of $385 million, up 6 per cent on the 2015-16 financial year.
Assets under management for the firm were up 17 per cent to $70 billion, and Challenger recorded annuity sales of $4 billion, up 20 per cent on the previous year.
Challenger also announced a "strategic relationship" with Japanese firm MS&AD Insurance Group Holdings that will be supported by a $500 million equity placement to MS&AD.
The Australian firm has had an arrangement in place with MS&AD subsidiary Mitsui Sumitomo Primary Life (MS Primary) to provide Australian dollar annuities in Japan since November 2016.
Following the share placement, MS&AD will represent 6.3 per cent of Challenger's issued capital – a holding that the Japanese firm has stated it intends to increase to 10 per cent over the next 12 months.
Commenting on the partnership, Challenger chief executive Brian Benari said, "This strategic relationship builds on Challenger's successful relationship with MS Primary and broadens our access to the Japanese market.
"It also provides significant capital to fund our future growth. We look forward to further leveraging our relationship with MS&AD group and exploring new growth opportunities for both groups."