• TAL Dai-ichi Life to acquire 15.1% stake in Challenger for A$8.46 per share
• Acquisition subject to regulatory approvals from FIRB and APRA
• Strengthens Challenger's strategic partnership with MS Primary

Challenger Limited (ASX:CGF) has announced that its Australian subsidiary, TAL Dai-ichi Life Australia Pty Limited (TAL), has agreed to acquire a 15.1% minority interest in Challenger from MS&AD Insurance Group Holdings, Inc. (MS&AD) at a price of ¥763 per share (approximately A$8.46 per share). The purchase price represents a premium of 53% to Challenger's closing share price on 4 April 2025. The share sale is subject to customary regulatory approvals including from the Australian Foreign Investment Review Board (FIRB) and the Australian Prudential Regulation Authority (APRA). Challenger's Managing Director and Chief Executive Officer, Nick Hamilton, said the strategic reinsurance relationship in place with MS Primary since 2016 has created significant shared value and will continue. Challenger and MS Primary have successfully collaborated over the last decade, and this partnership will not be impacted by the share sale. Following the completion of the sale of MS&AD's equity holding in Challenger, Mr Masahiko Kobayashi will accordingly step down as MS&AD's representative on the Challenger Limited Board.

TAL recognizes the evolving needs of Australia's retirement market, and the minority investment in Challenger reflects TAL's long-term commitment to the retirement income solutions sector, where they expect to benefit from the anticipated market growth.