Dai-Ichi Life HD buying 15% stake in M&G, expects $2b in new business

There will be no change in M&G’s issued share capital.

Dai-Ichi Life HD is acquiring approximately 15% of asset manager M&G for a yet undisclosed amount.

M&G will become Dai-Ichi Life’s preferred asset manager partner in Europe, the Japanese life insurer said in a press release.

Dai-Ichi Life HD expects to generate at least $2b in new business flows from the partnership and stake acquisition over the next five years.

Dai-Ichi Life HD said it will acquire the stake via on-market purchases, with no change to M&G’s issued share capital. Following this, Dai-Ichi Life HD expects to have the right to appoint a director to M&G’s board.

Dai-Ichi Life HD expects the partnership to generate at least $6b in new business flows in funds managed by M&G over the next five years. At least $3b is intended to be in M&G’s high-alpha strategies across public and private markets.

At least half of the $6b new business flows is expected to come from Dai-Ichi Life HD’s balance sheet on an evergreen basis.