Dai-ichi Life Holdings, Inc., a Japanese life insurance company, and M&G, an international asset manager and asset owner, have announced a long-term strategic partnership involving asset management and life insurance.
Under this agreement, M&G will serve as Dai-ichi Life HD’s preferred asset management partner in Europe.
The partnership will focus on expanding growth, distribution, and product development with the aim of generating new business flows for both companies.
This collaboration supports M&G’s plans to expand its asset management operations internationally, particularly in European private markets, while also providing potential new business opportunities in Japan and Asia.
The partnership is expected to increase long-term business flows and contribute to M&G’s adjusted operating profit.
M&G will provide Dai-ichi Life HD access to investment opportunities in both public and private markets across Europe, meeting the company’s internal investment needs and those of its customers. Dai-ichi Life HD will work with M&G to develop its skills in bulk purchase annuities as part of the arrangement.
As part of the deal, Dai-ichi Life HD intends—subject to regulatory approval—to acquire approximately a 15% stake in M&G plc through on-market purchases, without changing M&G’s issued share capital. This stake will give Dai-ichi Life HD the right to appoint a director to M&G’s board, provided it holds at least 15% of the shares.
Financially, the partnership aims to generate at least $6 billion in new business flows into M&G-managed funds over five years.
Half of this amount is expected to come from Dai-ichi Life HD’s balance sheet on a continuing basis, with the remainder coming from joint development efforts such as the distribution of M&G products by Dai-ichi Life HD.
Similarly, the partnership is expected to bring at least $2 billion in new business flows to Dai-ichi Life HD through balance sheet investments, distribution of asset management products, and jointly developed products.
The companies also plan to explore distributing M&G products in Japan and Asia, developing new products, collaborating in life insurance markets in Europe and Japan, and co-investing in asset management initiatives aligned with their priorities.
The partnership is governed by an Implementation Agreement outlining Dai-ichi Life HD’s ownership and governance rights, including a two-year lock-up on shares after reaching the 15% stake, a standstill restricting further acquisitions above 19.99%, and rules for orderly share disposals. Dai-ichi Life HD will have customary information rights related to its shareholding.
If the strategic objectives of the partnership change or certain conditions are not met, the agreement includes provisions for termination, which would affect Dai-ichi Life HD’s governance rights.
This agreement establishes a framework for cooperation between Dai-ichi Life HD and M&G, aiming to expand their business activities across multiple markets and investment sectors.
Tetsuya Kikuta, President and CEO of Dai-ichi Life HD, commented: “Dai-ichi Life Holdings is delighted to enter into a strategic alliance with M&G, a highly regarded global player in the insurance and asset management industries, to collaborate and develop capabilities together in multiple areas, especially in Europe.”
“We see our partnership with M&G acting as a spearhead to develop our presence across Europe and the UK, accelerating our strategy to become a global top-tier insurance group.
“M&G possesses not only a reputable and long-established life insurance business, but comprehensive asset management solutions in both public and private markets.
“With this alliance, we are bringing together our respective capabilities to create a mutually beneficial partnership that will create value over the long-term.”
Andrea Rossi, Group CEO of M&G, added: “The strategic partnership with Dai-ichi Life Holdings and the associated c.15% investment is recognition of M&G’s strengths and clear confidence in our leadership, strategy and long-term prospects.”
“It brings together two highly complementary international businesses with shared growth ambitions who aim to deliver excellent client service and sustainable shareholder returns.
“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.”
The post Dai-ichi Life and M&G announce strategic partnership in asset management and life insurance appeared first on ReinsuranceNe.ws.