TAL to increase stake in Challenger

TAL , the Australian subsidiary of Dai-ichi Life Holdings, has agreed to acquire an additional 4.8% stake in Challenger , an annuities and fund management firm, for approximately AUD 247 million (~$160 million). The shares will be purchased from a fund managed by Apollo Global Management, subject to regulatory approval.

Combined with a previously announced 15.1% acquisition from MS&AD, TAL will hold a 19.9% equity stake in Challenger and plans to apply equity-method accounting. The move marks a strategic push into Australia’s growing retirement-income market, where Challenger leads the individual annuity segment.

The investment is expected to complement TAL’s position in group protection and leverage synergies in product development, administration, and asset management.

TAL will fund the transaction from its own resources, with closing expected in the second half of FY2025.