Dai-ichi Life Holdings (Dai-ichi Life HD) and M&G plc have announced a landmark long-term strategic partnership that spans both asset management and life insurance, marking a significant step in Dai-ichi’s global expansion strategy.
As part of the alliance, Dai-ichi Life HD intends to acquire approximately 15% of M&G’s outstanding shares through market transactions, subject to regulatory approval. The transaction will not affect M&G’s issued share capital. Upon completion, Dai-ichi Life HD will be entitled to appoint a director to M&G’s board, contingent on maintaining the 15% shareholding.
Investor sentiment surged following the announcement, with M&G’s share price climbing over 8%—its highest level since June 2021. Under the terms of the partnership, M&G will become Dai-ichi Life HD’s preferred asset management partner in Europe.
A Strategic Step in Dai-ichi’s Global Vision
This partnership is the latest in a series of international moves by Dai-ichi Life HD, reflecting its ambition to expand its global footprint. Recent initiatives include increasing its ownership in Capula Investment Management and acquiring a 15.1% interest in Australian investment manager Challenger.
For M&G, the collaboration aligns with its strategy to scale its presence in European private markets. The partnership is expected to unlock new business channels from Japan and other Asian markets and support long-term growth in adjusted operating profit.
In its 2024 financial results, M&G reported an adjusted operating profit before tax of £837 million, up from £797 million the previous year. The growth was driven largely by its asset management operations, signaling strong momentum ahead of this new alliance.
Mutual Benefits and Synergies
The partnership will provide Dai-ichi Life HD with access to M&G’s broad investment capabilities across both public and private markets in Europe. In turn, M&G will help strengthen Dai-ichi’s expertise in bulk purchase annuities, an area of growing importance in the insurance sector.
M&G operates through multiple business units, including M&G Wealth, which oversees its wealth platform services, and M&G Investments, which manages its portfolio of investment funds. Its insurance offerings, marketed under the Prudential brand, provide a comprehensive suite of financial services across wealth management, investments, and insurance.
Andrea Rossi, Group Chief Executive of M&G, described the partnership as a strong vote of confidence in M&G’s leadership and strategic direction. “This collaboration not only underscores our strengths as a global asset manager but also sets the stage for long-term value creation across both businesses,” he said.
Financial Impact and Future Collaborations
Over the next five years, the partnership is projected to generate at least $6 billion in new business flows into M&G-managed funds. Of this, approximately $3 billion is expected to be allocated to M&G’s high-alpha strategies across public and private markets.
Half of the $6 billion will originate from Dai-ichi Life HD’s balance sheet on an evergreen basis, while the other half will stem from co-developed initiatives, including the distribution of M&G products by Dai-ichi Life HD.
In parallel, Dai-ichi Life HD is expected to benefit from at least $2 billion in new business flows over the same period. This will include investments in products offered by its asset management subsidiaries and the distribution of jointly developed solutions.
Looking ahead, the two firms are exploring a broader range of collaboration opportunities. These include joint product development, expanding the distribution of M&G offerings in Japan and Asia, potential cooperation in life insurance operations across Europe and Japan, and co-investments in new asset management capabilities tailored to their evolving portfolio needs.
