Insurance

MS&AD divests shares of Australian financial group Challenger Limited to Dai-ichi Life

Norbert Gehrke

Norbert Gehrke

— 2 min read
MS&AD divests shares of Australian financial group Challenger Limited to Dai-ichi Life

MS&AD Insurance Group Holdings has reached an agreement to sell all of its shares in Challenger Limited, an Australian financial services company with annuities and fund management businesses listed on the Australian Securities Exchange, amounting to 15.1% of the issued shares, to a group subsidiary of Dai-ichi Life Holdings.

MS&AD Insurance Group Holdings 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.

MS&AD Insurance Group Holdings will continue, including investment in further opportunities, its international life insurance businesses which are expected to benefit from market growth, in order to achieve its 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.

Summary of the transaction

  • Buyer: TAL Dai-ichi Life Australia Pty Limited (a wholly-owned Australian subsidiary of Dai-ichi Life Holdings)
  • Shares to be sold: All shares of Challenger Limited owned by MS&AD Insurance Group Holdings (104,353,125 shares)
  • Sale consideration: 80 billion yen

The transaction is subject to regulatory approvals by the relevant authorities and expected to complete during the fiscal year 2025.

At present, there are no material revisions to MS&AD Insurance Group Holdings' performance forecasts, and in case of revisions, the Company will promptly make a disclosure.

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