Challenger enters relationship with Japanese insurer
Challenger has used the release of its full-year financial results to announce it has received a $500 million equity injection from Japanese insurer MS&AD.
Challenger's 2017 full-year result saw the wealth management firm post a net profit after tax of $385 million, up 6 per cent on the 2015-16 financial year.
Assets under management for the firm were up 17 per cent to $70 billion, and Challenger recorded annuity sales of $4 billion, up 20 per cent on the previous year.
Challenger also announced a "strategic relationship" with Japanese firm MS&AD Insurance Group Holdings that will be supported by a $500 million equity placement to MS&AD.
Following the share placement, MS&AD will represent 6.3 per cent of Challenger's issued capital – a holding that the Japanese firm has stated it intends to increase to 10 per cent over the next 12 months.
Commenting on the partnership, Challenger chief executive Brian Benari said, "This strategic relationship builds on Challenger's successful relationship with MS Primary and broadens our access to the Japanese market.
"It also provides significant capital to fund our future growth. We look forward to further leveraging our relationship with MS&AD group and exploring new growth opportunities for both groups."
Class action filed over grandfathered commissions
Major law firm Slater and Gordon has today filed a class action on behalf of 500...
AFSL forced to shut down robo-advice tool
A Sydney-based licensee has voluntarily shut down two digital advice tools follo...
Closing advice gap on ASIC’s radar for 2020
ASIC chair James Shipton says he is “acutely aware” of the growing shortfall...