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Highlights

  • Dai-ichi Life will acquire a roughly 15% stake in M&G, gaining board representation rights.
  • The partnership targets GBP 6 billion in new business flows to M&G-managed funds and GBP 2 billion for Dai-ichi Life HD over five years.
  • Collaborative efforts include expansion in European private markets, product development, and potential life insurance ventures in Europe and Japan.

Dai-ichi Life Holdings, Inc. ("Dai-ichi Life HD") and M&G (LSE:MNG) have formed a long-term strategic partnership aimed at collaboration across asset management and life insurance sectors. Under this agreement, M&G will become Dai-ichi Life HD's preferred asset management partner in Europe, focusing on growth, distribution, and product development to generate new business flows for both companies.

The partnership is designed to support M&G’s expansion in European private markets and to open new business channels in Japan and Asia. Through this collaboration, M&G will provide Dai-ichi Life HD access to public and private market capabilities for its investment needs and customer offerings. Additionally, Dai-ichi Life HD will work with aM&G to enhance its expertise in bulk purchase annuities.

As part of the arrangement, Dai-ichi Life HD intends, subject to regulatory approvals, to acquire approximately 15% of M&G plc via on-market purchases, without changing M&G’s issued share capital. This shareholding would grant Dai-ichi Life HD the right to appoint a director to M&G’s board while maintaining at least a 15% stake. The agreement includes customary contractual restrictions such as a two-year lock-up on shares, standstill restrictions preventing acquisitions beyond 19.99%, and orderly market arrangements for share disposals.

The partnership is expected to generate at least GBP 6 billion in new business flows into M&G-managed funds over the next five years, with half anticipated from Dai-ichi Life HD’s balance sheet and the remainder from joint distribution and development efforts. Concurrently, the alliance aims to produce GBP 2 billion in new business flows for Dai-ichi Life HD through balance sheet investments and product distribution. The companies also plan to explore collaboration in life insurance markets in Europe and Japan, alongside co-investment opportunities in new asset management capabilities.