MS&AD Insurance Group will provide Challenger with ¥50 billion ($637.26 million) of reinsurance annually for the next five years, in an expansion of their strategic relationship.

The reinsurance – provided through subsidiary MS Primary – will support Challenger’s Australian and international growth plans.

MS&AD will also increase its Challenger shareholding to more than 15% and nominate a non-executive director to join the board.

Challenger has partnered with MS Primary since 2016 to reinsure Australian-currency annuity products. MS Primary is a provider of foreign-currency annuities.

Challenger has also struck a new deal with MS Primary to reinsure the US-dollar version of its 20-year term product.