M&G and Dai-ichi Life launch ambitious long-term strategic partnership

Dai-ichi Life Holdings (Dai-ichi Life HD) and M&G have launched a long-term strategic partnership across asset management and life insurance.

As part of the deal, M&G will become the preferred asset management partner for Dai-ichi Life HD in Europe. Additionally,  Dai-ichi Life HD said it intends to acquire around a 15% shareholding in M&G plc.

The pair said the partnership is expected to deliver at least $6bn (€5.3bn) of new business flows for M&G and $2bn of new business flows for Dai-ichi Life HD over the next five years.

They added that this strategic partnership will be focused on growth, distribution and product development opportunities, with the goal of delivering substantial new business flows for both M&G and Dai-ichi Life HD.

Consistent with M&G’s strategy to deliver asset management and international growth, the strategic partnership with Dai-ichi Life HD will accelerate M&G’s expansion in European private markets, while opening new potential sources of business flows in Japan and across Asia, the company said.

M&G will support Dai-ichi Life HD’s access to public and private markets capabilities in Europe, for Dai-ichi Life HD’s own investment requirements as well as the needs of its customers.

Dai-ichi Life HD “highly values the strong life insurance capabilities of M&G”, and, as part of the partnership, will work closely with M&G to enhance its own expertise in bulk purchase annuities.

In recognition of M&G’s compelling investment case and growth potential, Dai-ichi Life HD said it intends (subject to regulatory approvals) to acquire a shareholding of around 15% in M&G plc, to create “significant alignment to capture long-term value creation opportunities” across an array of strategic initiatives. Dai-ichi Life HD intends to acquire this stake via on-market purchases with no change to M&G’s issued share capital, the Japanese company confirmed.

Tetsuya Kikuta, president and CEO of Dai-ichi Life HD said: “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 said: “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.”

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