Japanese life insurer Dai-ichi Life Holdings Inc. will take a 15.1% stake in an Australian life insurer Challenger.
With life insurers facing challenges on multiple fronts in the domestic market, including declining birthrate and an ageing population company, the insurer is looking to expand its overseas business. Dai-ichi will acquire a stake in Challenger worth JPY80bn ($551m) from Tokyo-based Mitsui Sumitomo Insurance & Aioi Nissay Dowa (MS&AD) Insurance Group Holdings Inc.
Challenger is a major provider of personal pension products in Australia. MS&AD has been gradually increasing its position in the firm since 2017.