LONDON: Dai-ichi Life Holdings, Inc. and British asset manager M&G plc announced a long-term strategic partnership Wednesday, combining asset management and life insurance expertise with plans for cross-border growth and a potential 15% stake acquisition by the Japanese insurer.
Under the agreement, M&G will become Dai-ichi Life’s preferred European asset manager, with a target of generating at least $6 billion in new business flows over five years. Half is expected to come from Dai-ichi Life’s balance sheet, while the other half will stem from joint product distribution. The partnership also aims to drive $2 billion in new business for Dai-ichi Life through shared asset management and insurance ventures.
Key Deal Terms:
– Equity Stake: Dai-ichi Life intends to acquire ~15% of M&G’s shares via market purchases, pending regulatory approval. The move includes a two-year lock-up period and a cap preventing ownership from exceeding 19.99%.
– Governance: Dai-ichi Life will gain a board seat if it maintains at least a 15% stake.
– Focus Areas: Collaboration spans private markets in Europe, annuity products, and distribution of M&G funds in Japan and Asia.
The partnership aligns with M&G’s push into European private markets and Dai-ichi Life’s ambition to expand globally. M&G will provide investment solutions for Dai-ichi Life’s portfolio, while the Japanese firm will help distribute M&G products in Asia.
– Tetsuya Kikuta, CEO of Dai-ichi Life, called M&G a “spearhead” for European growth, citing its “comprehensive asset management solutions.”
– Andrea Rossi, M&G’s Group CEO, said the deal reflects confidence in the firm’s strategy and opens doors in Japan and Asia.
– The deal includes an Implementation Agreement governing ownership terms and exit clauses if strategic alignment lapses.
– M&G expects the partnership to support growth in Adjusted Operating Profit.