Dai-ichi Life Holdings (Dai-ichi Life HD) and M&G have formed a long-term strategic partnership in asset management and life insurance. As part of the agreement, Dai-ichi Life HD plans to acquire approximately 15% of M&G plc’s shares, subject to regulatory approvals. The stake will be purchased through on-market transactions, with no impact on M&G’s issued share capital.
Key Elements of the Partnership
Following the acquisition, Dai-ichi Life HD will have the right to appoint a director to the M&G Board, conditional on maintaining at least a 15% shareholding. M&G will become Dai-ichi Life HD’s preferred asset management partner in Europe. The partnership is expected to support M&G’s strategy for expanding its presence in European private markets and provide new channels for business flows from Japan and across Asia.
Business Projections
The partnership is projected to deliver at least $6 billion in new business flows into M&G-managed funds over the next five years. Of this amount, at least $3 billion is intended for M&G’s high-alpha strategies in both public and private markets. Half of the anticipated $6 billion inflow is expected to originate from Dai-ichi Life HD’s balance sheet on an evergreen basis, with the remaining half derived from joint development initiatives.
Andrea Rossi, group chief executive of M&G, commented that the partnership represents recognition of M&G’s strengths and confidence in its leadership and strategy. “It will enable us to further capitalise on the significant private market opportunities across Europe and enable even greater access to the Japanese and Asian market where we will benefit from Dai-ichi Life Holdings market-leading expertise,” Rossi said.
Tetsuya Kikuta, president and chief executive of Dai-ichi Life HD, stated that the partnership will act as a spearhead to develop their presence across Europe and the UK, accelerating their strategy to become a global top-tier insurance group. The companies plan to explore further collaboration opportunities, including joint investments in new asset management capabilities and potential cooperation in life insurance in Europe and Japan.
