Dai-ichi Life acquires 15% of M&G

Dai-ichi Life HD, which owns TAL, will acquire 15% of British asset manager M&G, with the two establishing a long-term strategic partnership across asset management and life insurance.

Under the partnership, which is expected to produce at least US$6 billion of new business flows for M&G and US$2 billion for Dai-ichi Life over the next five years, M&G will become Dai-ichi Life's preferred asset management partner in Europe.

Dai-ichi Life will buy 15% of M&G, giving it the right to appoint a director to the board. M&G said this will ensure a strong alignment of values.

"Consistent with M&G's strategy to deliver asset management and international growth, the strategic partnership with Dai-ichi Life HD will accelerate M&G's expansion in European private markets, while opening new potential sources of business flows in Japan and across Asia," M&G said.

"M&G will support Dai-ichi Life HD's access to public and private markets capabilities in Europe, for Dai-ichi Life HD's own investment requirements as well as the needs of its customers. Dai-ichi Life HD highly values the strong life insurance capabilities of M&G and, as part of the partnership, will work closely with M&G to enhance its own expertise in bulk purchase annuities."

Dai-ichi Life will also consider distributing M&G's products in Japan and Asia, and the two will consider collaborating on life insurance solutions in Europe and Japan. The partnership will also allow them to explore co-investing in new opportunities.

"Dai-ichi Life Holdings is delighted to enter into a strategic alliance with M&G, a highly regarded global player in the insurance and asset management industries, to collaborate and develop capabilities together in multiple areas, especially in Europe," Dai-ichi Life president and chief executive Tetsuya Kikuta 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."M&G possesses not only a reputable and long-established life insurance business, but comprehensive asset management solutions in both public and private markets. With this alliance, we are bringing together our respective capabilities to create a mutually beneficial partnership that will create value over the long-term."

Likewise, M&G group chief executive Andrea Rossi said: "The strategic partnership with Dai-ichi Life Holdings and the associated c.15% investment is recognition of M&G's strengths and clear confidence in our leadership, strategy and long-term prospects.""It 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."