Distribution Asset Management is an important task performed by utility companies to prolong the lifetime of the critical distribution assets and to accordingly ensure grid reliability by preventing unplanned outages. This study focuses on microgrid applications for distribution asset management as a viable and less expensive alternative to traditional utility practices in this area. A microgrid is as an emerging distribution technology that encompasses a variety of distribution technologies including distributed generation, demand response, and energy storage. Moreover, the substation transformer, as the most critical component in a distribution grid, is selected as the component of the choice for asset management studies. The resulting model is a microgrid-based distribution transformer asset management model in which microgrid exchanged power with the utility grid is reshaped in such a way that the distribution transformer lifetime is maximised. Numerical simulations on a test utility-owned microgrid demonstrate the effectiveness of the proposed model to reshape the loading of the distribution transformer at the point of interconnection in order to increase its lifetime.