30 Mar Financial Services: Linkages Intensifying
Financial services is one area of Australia-Japan business which has been growing and which many in the industry feel has even greater potential. Sony Life has recently taken a shareholding in wealth management company, Clearview. (Another major Japanese player Mitsubishi UFJ Trust and Banking Corporation had several years ago formed a capital alliance with AMP Capital).
Another leading Australian investment management firm Challenger, which has had a long relationship of business in the Japanese market, announced late last year a new annuity relationship with Mitsui Sumitomo Primary Life Insurance Company Limited, part of the MS&AD Financial Group [Japanese only], a leading provider of Australian dollar annuity and life insurance products. It recently launched an innovative Australian dollar product with a 20 year fixed rate in Japan. “The product is being distributed through the Japanese bancassurance channel, which includes both mega and regional banks responding to the needs of their ageing customers. From last year, Challenger is issuing Australian dollar fixed rate annuities with a 20 year term to support a reinsurance agreement with MS Primary. Challenger will provide a guaranteed interest rate and assume the investment risk initially on half of each new policy issued by Mitsui Sumitomo Primary Life Insurance.”