Japan’s Dai-ichi Life may get $104m annual profit raise after M&G deal

Fitch anticipates minimal and manageable negative impact on Dai-ichi Life’s capital adequacy.

Dai-ichi Life Holdings’ plan to acquire a stake in UK’s M&G is expected to enhance the Japanese insurer’s diversification.

Fitch Ratings estimates that the deal is likely to increase Dai-ichi Life’s consolidated adjusted profit by approximately JPY15b per annum, or more or less $104.9m.

Fitch anticipates minimal and manageable negative impact on the Dai-ichi Life’s capital adequacy and financial leverage.

However, it will be incrementally positive over the medium term for Dai-ichi Life’s credit profile, given M&G’s supposedly strong international investment ability, the ratings agency said.

For M&G, the proposed stake acquisition is ‘broadly neutral’ in the medium term. There is potential for enhanced diversification of earnings sources in the longer term, Fifth said.

Fitch also expects assets and earnings from M&G's international business to grow gradually over the long term, particularly in its asset management segment.

(US$1 = JPY142.94; as of 5 June 2025, Google from Morningstar)