Dai-ichi Life Holdings plans to acquire a 15% stake in M&G to expand its operations in the U.K. and European life insurance and asset management sectors. The companies described the move as part of a broader strategic partnership that may also extend into Asia.
Under the agreement, M&G will become Dai-ichi Life’s preferred asset management partner in Europe. Both companies expect to benefit from product development, business growth, and expanded distribution.
The partnership aims to generate at least $6 bn in new business flows into M&G-managed funds over the next five years. Around $3 bn of this will focus on high-alpha strategies in public and private markets.
Half of the projected flows will come directly from Dai-ichi Life’s balance sheet on a long-term basis.
The other half will result from joint initiatives, including the distribution of M&G products through Dai-ichi Life’s network. In return, Dai-ichi Life anticipates $2 bn in new flows over five years, derived from both its subsidiaries’ products and joint product distribution.
The companies said this agreement will support M&G’s efforts to grow its presence in European private markets while providing Dai-ichi Life with new investment channels in Europe and future expansion options in Asia.
The acquisition will also include collaboration on bulk purchase annuities, with Dai-ichi Life aiming to build expertise through cooperation with M&G.
The share purchase will occur on the open market, priced at prevailing rates on the London Stock Exchange. Regulatory approval is required once Dai-ichi Life’s stake reaches 10%.
Subject to conditions, Dai-ichi Life will gain the right to appoint a director to M&G’s board if it holds at least 15% of the company.
The companies noted the stake does not involve issuing new shares and will not change M&G’s capital structure.
The timeline for the acquisition reflects typical conditions for assembling a holding of this size and depends on regulatory approval.
Dai-ichi Life recently sold its shares in Ocean Life Insurance Public in Thailand to the insurer’s founding family and increased its ownership in a London-based asset manager. The group continues to shift its international positions to strengthen its global asset management and insurance strategy.
