MS&AD Insurance Group Holdings will sell its 15.1% stake in Challenger Ltd. to TAL Dai-ichi Life Australia, a subsidiary of Dai-ichi Life Holdings.
Challenger operates in annuities and fund management. The sale price is ¥80 bn ($550 mn). Regulatory approvals are required, and the deal is expected to close in fiscal year 2025.
Challenger, based in Sydney, had A$2.51 bn ($1.52 bn) in contributed equity and A$3.89 bn in net assets as of June 2024. Its total life sales reached A$9.14 bn, and statutory net profit after tax stood at A$130 mn.
MS&AD accepted the offer due to a sufficient premium over Challenger’s market value and said the transaction supports its plan to improve capital efficiency.
The company will continue investing in its international life insurance businesses, aiming to increase profit and corporate value by diversifying income and risk sources.
MS&AD recently announced that its two main property and casualty subsidiaries—Mitsui Sumitomo Insurance and Aioi Nissay Dowa Insurance—will merge by April 2027.
This move is intended to improve oversight and position the group as Japan’s largest insurer by market share.
MS&AD stated that there are currently no material changes to its financial forecasts. Any future revisions will be disclosed as needed.
