Japanese life insurer Daido Life acquired a 14.9% stake in an Australian life insurer in an effort to expand offshore.
Daido Life invested $13 million in the newly launched Integrity Group, the owner of Integrity Life.
Worth $18 billion, Daido Life is a subsidiary of Japanese listed life insurance holding company T&D Holdings. It specialises in providing individual term life insurance by partnering with small and medium-sized enterprises.
Integrity Life launched in early 2018 offering group risk products after raising $165 million of capital and acquiring QBE Life for $21.7 million. The deal saw Integrity Life underwriting the life insurance component of QBE's consumer credit insurance suite sold via financial institutions.
Integrity Life managing director and chief executive Chris Powell at the time said: "The top 10 life insurers hold 96% market share - we are about to see their number reduced to a top seven or six. This means there is a place for new operators to disrupt the market with differentiated products and services."
Powell said Daido Life's interest is a key milestone as Integrity Life builds an offering that brings greater integrity to life insurance, adding "we intend to challenge the way things have been and are currently done."
"The growth path from here includes building flexible, tailored personal life insurance which delivers advisers and customers an easier and more transparent experience. We look forward to a long-term mutually-beneficial relationship with Daido Life," he said.
Powell added Integrity Life currently has access to over $180 million equity and debt capital.
Daido Life representative director and president Minoru Kudo said: "We admire and share Integrity Life's values and its commitment to fair outcomes, and look forward to cooperative activities and knowledge transfer, particularly around customer centricity and the use of technology to disrupt established markets."