Dai-ichi Life Holdings and M&G have agreed a long-term strategic partnership across asset management and life insurance, after Dai-ichi Life HD announced plans to buy a 15% shareholding in the UK-based asset manager.
It will have the right to appoint a director to the board of M&G plc for as long as it retains at least a 15% shareholding.
Dai-ichi Life HD plans to acquire this stake via on-market purchases with no change to M&G’s issued share capital. Subject to certain conditions having been met, Dai-ichi Life HD will have the right to appoint a director to the Board of M&G plc for as long as it holds at least a 15% shareholding in M&G plc.
Tetsuya Kikuta, president and CEO of Dai-ichi Life HD said: “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 will become Dai-ichi Life HD’s preferred asset management partner in Europe. 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, according to a statement by the firms.
Dai-ichi Life HD will also consider distributing M&G products in Japan and Asia, as well as working together to develop new products.
Andrea Rossi, group CEO of M&G said about the deal: “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.”
M&G expects the partnership to drive improved long-term new business flows and to support growth in adjusted operating profit. The partners expect the deal to deliver at least $6bn of new business flows for M&G and $2bn of new business flows for Dai-ichi Life HD over the next five years.
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, said the statement.
