MS&AD to spend US$401m for stake in ChallengerAugust 16 2017 by InsuranceAsia News Staff
Japan’s MS&AD Insurance Group is set to shell out ¥44 billion (US$401 million) to buy about a 6%-plus interest in leading Australian superannuation industry player Challenger.
Based in Sydney, Challenger is engaged in the business of offering retirement-focused insurance and asset management services.
It accounts for about half of Australia’s superannuation market in terms of sales and is considered to be an industry leader, with its closest rival lagging behind by a margin of more than 2-to-1.
Australia’s superannuation market is projected to reach a value of AU$9.5 trillion (US$7.47 trillion) by 2035 from the current AU$2 trillion.
Employers in Australia are required to pay in 9.5% of workers’ regular pay toward retirement.
MS&AD’s affiliate Mitsui Sumitomo Primary Life Insurance has an Australian presence already with its partnership with Challenger.
The Japanese insurance group now wants to raise its stake in the Australian company.
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