Challenger expands partnership with MS&AD
Challenger has announced the expansion of its strategic relationship with MS&AD Insurance Group Holdings in order to support its growth both domestically and internationally.
The expanded deal would see Challenger commence from 1 July a quota shares reinsurance of US dollar denominated annuities issued in the Japanese market by Mitsui Sumitomo Primary Life Insurance (MS Primary), a subsidiary of MS&AD.
Under the new agreement, MS Primary would also provide Challenger Life an annual amount of reinsurance, across both Australian and US dollar annuities, of at least around of A$640 million per year for a minimum of five years.
Additionally, MS&AD said it planned to increase its Challenger shareholding to over 15 per cent of issued capital and seek representation on the Challenger board. Following this, the company would also nominate one non-executive director to join the challenger’s board.
“The expansion of our relationship to cover a wider range of annuities and include board representation for MS&AD, demonstrates our commitment and confidence in Challenger,” MS&AD president and chief executive, Yasuyoshi Karasawa, said.
Challenger first partnered with MS primary in 2016 to reinsure Australian dollar denominated annuity products.
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