Tokyo, Oct. 19 (Jiji Press)–A subsidiary of major Japanese insurer Daiichi Life Group Inc. has proposed acquiring Australian peer Challenger Ltd., the Australian company said Monday. Daiichi Life currently owns about 20 pct of Challenger and aims to buy the remaining 80 pct through the Australian subsidiary, TAL Daiichi Life Australia Pty Ltd. The possible deal is estimated to be worth about 700 billion yen. Challenger primarily engages in annuity insurance for individuals. Daiichi Life hopes to expand its earnings in Australia through the acquisition as the Japanese market is shrinking due to the Asian country’s declining population. The board of Challenger is examining the nonbinding preliminary proposal. In a statement released Monday, Daiichi Life confirmed that the Australian unit has submitted a nonbinding proposal to Challenger but added that “no decision has been made…with respect to proceeding with” a binding transaction at this moment. END [Copyright The Jiji Press, Ltd.]
