From Yahoo Finance: 2025-06-02 06:01:00

Dai-ichi Life Holdings plans to acquire a 15% stake in UK insurer M&G through on-market purchases for long-term value creation. The acquisition, pending regulatory approval, will establish a strategic partnership in asset management and life insurance, with M&G becoming Dai-ichi’s preferred asset management partner in Europe.

Once the 15% threshold is reached, Dai-ichi will appoint a director to M&G’s board. The partnership aims to drive growth, distribution, and product development, generating new business flows for both companies. M&G anticipates expansion into European private markets and new opportunities in Japan and Asia.

Dai-ichi will leverage M&G’s investment capabilities to support its portfolio and client needs, enhancing expertise in bulk purchase annuities. The partnership is expected to bring at least $6bn in flows into M&G funds over five years, with Dai-ichi anticipating $2bn in new flows through investments and distribution.

An implementation agreement outlines governance rights, including a two-year lock-up and a 19.99% shareholding cap. M&G Group CEO Andrea Rossi emphasizes shared growth ambitions and client service excellence. The strategic alliance aligns with Dai-ichi’s goal to become a top-tier global insurance group.

In a related move, Dai-ichi’s subsidiary TAL agreed to acquire a 15.1% stake in retirement solutions provider Challenger for Y80bn. The acquisition of M&G stake underscores Dai-ichi’s strategic expansion efforts in the insurance and asset management industries.

Read more: Dai-ichi Life to acquire 15% stake in British insurer M&G