Japan's Dai-ichi Life to take 15% stake in M&G
Japan’s Dai-ichi Life Holdings is to take a major stake in investment manager M&G, it was announced on Friday, after the two firms struck a long-term strategic partnership.
Under the terms of the deal, the blue chip will become Dai-chi Life’s preferred asset management partner in Europe, while the mutual insurer will acquire a shareholding of around 15% in M&G.
The partnership is expected to generate at least $6bn in new business flows into funds managed by M&G over the next five years, the British firm said, and $2bn of new business flows for Dai-ichi Life.
Half of the $6bn is forecast to come from Dai-ichi Life’s balance sheet on an evergreen basis, with the remaining 50% coming from joint development opportunities.
Andrea Rossi, M&G chief executive, said the deal "brings together two highly complementary international businesses with shared growth ambitions.
"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."
Tetsuya Kikuta, chief executive of Dai-ichi Life, 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."
The investment, which is subject to regulatory approvals, will give Dai-ichi Life the right to appoint a director to M&G board’s for as long as its holds the 15% stake.