Challenger and Apollo business relationship update

Challenger Limited (ASX:CGF) and Apollo Global Management (NYSE: APO) have reaffirmed their strong business relationship, with Apollo reducing its shareholding in Challenger from 20.1% to 9.9%. The strategic partnership, initiated in July 2021, aims to provide customers with financial security for a better retirement. Apollo's decision to decrease its ownership in Challenger supports the reallocation of capital to other growth opportunities.

Executive commentary on the strategic partnership

Challenger Managing Director and Chief Executive Officer, Mr Nick Hamilton, emphasized the collaborative partnership with Apollo, stating, 'Challenger and Apollo have developed a collaborative partnership that supports our broader growth strategy. We look forward to continuing this relationship and pursuing a range of initiatives to deliver value for Challenger shareholders, including through asset origination and distribution of Apollo's high-quality products in Australia.' Apollo Head of Asia-Pacific, Mr Matthew Michelini, expressed confidence in Challenger as a platform to offer the next generation of investment products to retirees in Australia, adding, 'As one of our most important long-term strategic partners globally, we look forward to continuing to collaborate on asset management and product design.'

Summary of Challenger and Apollo's ongoing collaboration

Challenger (ASX:CGF) and Apollo Global Management have reaffirmed their strategic partnership, with Apollo reducing its shareholding in Challenger from 20.1% to 9.9%. The ongoing collaboration aims to provide customers with financial security for a better retirement. Apollo's decision to decrease its ownership in Challenger supports the reallocation of capital to other growth opportunities. Additionally, MS&AD Insurance Group Holdings Inc. will become Challenger's largest shareholder, with a shareholding of 15.1%, remaining unchanged. Challenger remains committed to the strategic reinsurance partnership with MS&AD, extending the agreement with Mitsui Sumitomo Primary Life Insurance Company Limited for five years. Looking ahead, Challenger's ambitions include pursuing a range of initiatives to deliver value for shareholders, including through asset origination and distribution of Apollo's high-quality products in Australia.