MS&AD Insurance Group Holdings Inc has reached a deal to sell its full equity holding in Challenger Ltd, an Australian annuities and investment management firm, to TAL Dai-ichi Life Australia Pty Ltd, a subsidiary of Japan’s Dai-ichi Life Holdings Inc.
The transaction, valued at ¥80 billion (approximately US$550 million), involves 15.1% of Challenger’s total issued shares and is scheduled to complete in fiscal year 2025, pending regulatory approvals.
Based in Sydney, Challenger reported A$2.51 billion in contributed equity and A$3.89 billion in net assets as of June 2024. The company’s annual life insurance sales totalled A$9.14 billion, with a statutory net profit after tax of A$130 million.
MS&AD noted that the decision to sell was part of a strategy to improve capital efficiency.
The company said it evaluated a proposal from Dai-ichi Life that offered a premium on Challenger’s current stock valuation, making the sale financially viable.
While exiting its position in Challenger, MS&AD stated that it remains committed to growing its global life insurance operations, which it views as a key pillar for future earnings and business diversification.
“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,” it said in a statement.
Outside life insurance, MS&AD has confirmed that it will merge its two primary non-life insurance subsidiaries – Mitsui Sumitomo Insurance Co Ltd and Aioi Nissay Dowa Insurance Co Ltd.
The acquiring company, TAL, said the purchase supports its long-term objective of strengthening its presence in Australia’s growing retirement sector.
Fiona Macgregor, TAL’s CEO, highlighted the strategic relevance of the acquisition.
“There is an important community need to address with 5 million Australians currently in or preparing for retirement. Our minority investment in Challenger is an extension of our commitment to supporting Australians’ financial needs during retirement,” she said.
This acquisition comes amid shifting demographic and labour trends in Australia’s insurance industry. Research from Aon’s 2025 Human Capital Employee Sentiment Study found that retirement planning now ranks among the top five employee benefits in demand across the country.
