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Friday 21 June 2024

Challenger (ASX: CGF): Extends partnership with MS Primary

Investment management firm Challenger Limited (ASX: CGF) announces it will extend the reinsurance partnership between Challenger Life and Mitsui Sumitomo Primary Life Insurance Company Limited (MS Primary).

Since November 2016, Challenger Life has successfully partnered with MS Primary, a leading annuities provider in Japan, to reinsure Australian dollar annuities. The arrangement has subsequently expanded to include US dollar and Japanese yen-denominated annuities. Under the new agreement, Challenger Life will continue to receive a quota share of reinsurance across Australian dollar, US dollar, and Japanese yen-denominated annuities issued in Japan by MS Primary, commencing from 1 July 2024.

MS Primary will provide Challenger Life an annual amount of reinsurance of at least ¥50 billion per year (currently ~A$500 million ) for the next five years, subject to review in the event of a material adverse change for either MS Primary or Challenger Life.

Challenger Life will also support MS Primary with any new reinsurance requirements that MS Primary may have. MS Primary is a subsidiary of MS&AD Insurance Group Holdings Inc., which holds 15% of Challenger’s issued share capital, and under a long-term strategic relationship has representation on the Challenger Limited Board.

 

Highlights:

• Challenger extends the reinsurance partnership between Challenger Life and Mitsui Sumitomo Primary Life Insurance Company (MS Primary)

• Under the new agreement, Challenger Life will continue to receive a quota share of reinsurance across Australian dollar , US dollar , and Japanese yen-denominated annuities issued in Japan by MS Primary

• MS Primary will provide Challenger Life an annual amount of reinsurance of at least ¥50 billion per year (currently ~A$500 million ) for the next five years

Commentary:

Challenger’s Chief Executive Officer and Managing Director, Nick Hamilton said:

“We are delighted to extend our reinsurance partnership with MS Primary. This reflects the strong, collaborative and mutually beneficial relationship that we have developed over a number of years, and it was a privilege to celebrate the eighth year of our reinsurance partnership with a MS Primary delegation at our Sydney office this week.”

https://announcements.asx.com.au/asxpdf/20240522/pdf/063ss9bwqqyxhc.pdf

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