Challenger extends, deepens MS Primary partnership

Major Japanese insurer, Mitsui Sumitomo Primary Life has flagged expanding its relationship with Challenger Limited’s Challenger Life after the two companies announced an extension of their reinsurance partnership.

Confirming extension of the reinsurance relationship, Mitsui Sumitomo Primary executive chairman, Yasuhiro Nagai referenced expansion of the relationship into asset management in Australia and Japan and pointed to new dimensions.

“We hope to continue to explore and exploit opportunities with Challenger to further mutual benefits and enhance the business partnership,” he said.

Announcing the extended reinsurance partnership, the two companies said that Challenger would continue to receive a quote share of reinsurance across Australia dollar, US dollar and Japanese yen denominated annuities issued in Japan by MS Primary commencing from 1 July.

The announcement said that MS Primary would provide Challenger Life an annual amount of reinsurance of at least 50 billion yen per year for five years, subject to a review in the event of material adverse change for either company.

Challenger’s chief executive and managing director, Nick Hamilton said the arrangement supports the firm’s focus on longer duration annuity business with the objective of improving the quality of Challenger Life’s annuity book growth.