MS&AD to sell Challenger shares to TAL Dai-ichi Life Australia

Japanese insurance group MS&AD Insurance Holdings, the parent of the Mitsui Sumitomo insurance entities, has agreed to sell all of its shares in Australian financial services company with annuities and fund management businesses, Challenger Limited, to TAL Dai-ichi Life Australia Pty Limited, a wholly-owned Australian subsidiary of Dai-ichi Life Holdings.

As per the transaction details, MS&AD Insurance is selling all of its stake in Challenger, which amounts to approximately 104,353,125 shares, or 15.1% of the issued shares, for a sale consideration of 80 billion yen.

The transaction is subject to regulatory approval by the relevant authorities and is expected to be completed during the fiscal year 2025.

“The Company has been exploring an opportunity for further improvement of its capital efficiency, and accepted a share purchase proposal from Dai-ichi Life Holdings, considering a sufficient premium over the current stock price,” explains MS&AD.

Adding, “The company will continue, including investment in further opportunities, its international life insurance businesses which are expected to benefit from market growth, in order to achieve our vision of “creating a world-leading insurance and financial service group” and to enhance profit and corporate value from diversified risk and sources of income through international life insurance business.”

MS&AD acquired a stake in Challenger in August 2017, investing AUD 500 million to take a 6.3% stake in the company.

In 2019, MS&AD expanded its strategic relationship with Challenger through a quota share reinsurance arrangement of US dollar-denominated annuities.

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