Japan's Dai-Ichi Life to take 15% stake in British insurer M&G

CNA

4 days ago

M&G has formed a partnership with Dai-ichi Life Holdings in which the Japanese life insurer plans to buy a 15 per cent stake, sending shares in the British insurer and asset manager up sharply.
The partnership, which makes Dai-ichi M&A's biggest single shareholder, is expected to deliver at least $6 billion of new business flows for M&G and $2 billion of new business flows for Dai-ichi Life over the next five years, M&G said on Friday.
The two companies will "pursue opportunities to co-invest in new asset management capabilities", and M&G will become Dai-ichi Life's preferred asset management partner in Europe as part of the deal.
Andrea Rossi, group CEO of M&G, said that the partnership would enable it to capitalise on "significant private market opportunities across Europe" and give it greater access to the Japanese and Asian market.
M&G shares rose more than 8 per cent in early trading, hitting their highest since June 2021.
Under the deal, Dai-ichi Life will have the right to appoint a director to the board of M&G for as long as it holds at least a 15 per cent shareholding, the British company said.
M&G reported an unexpected rise in annual profit in March, helped by cost-cutting and growth in its asset management business.
Dai-ichi Life earlier in May said it would raise its stake in UK-based Capula Investment Management to 15 per cent, from just under 5 per cent, and in April announced an agreement to buy a 15.1 per cent stake in Australian investment manager Challenger for around $550 million.