30th May 2025 09:53
(Alliance News) - M&G PLC on Friday said it entered a new long-term strategic partnership with Japanese life insurer Dai-ichi Life Holdings Inc on asset management and life insurance.
The London-based asset manager will become Dai-ichi Life's preferred asset management partner in Europe, with the goal of delivering "substantial" new business flows for both companies.
Dai-ichi also intends to acquire around a 15% stake in M&G, which upon completion would give Dai-ichi the right to appoint a director to the board of M&G. "It is expected that M&G will be an affiliate of Dai-ichi Life HD for Japanese accounting purposes," M&G said.
M&G shares rose 6.2% to 238.24 pence each on Friday morning in London.
The partnership is expected to generate least USD6 billion in new business flows into funds managed by M&G over the next five years, and at least USD2 billion in new business flows for Dai-ichi Life over five years.
The deal will accelerate M&G's expansion in European private markets, while also opening new potential sources of business flows in Japan and across Asia, M&G said.
M&G expects the partnership to support growth in adjusted operating profit, noting that its performance in the year to date has been broadly in line with expectations, against a "volatile" market environment.
M&G Chief Executive Officer Andrea Rossi said the partnership "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."
By Tom Budszus, Alliance News slot editor
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