MS&AD buys 18% stake in Barings

MassMutual will retain control with an 82% holding after the transaction.

MS&AD Insurance Group Holdings, Inc. has acquired an 18% equity stake in Barings through its subsidiary, Mitsui Sumitomo Insurance Co., Ltd.

MassMutual, the parent company of Barings, retains an 82% controlling stake. 

Barings will continue to operate as an independent subsidiary of MassMutual with no changes to its day-to-day operations, investment processes, or strategy. 

It will also maintain its role managing the majority of MassMutual’s general investment account.

Following the transaction, Barings will manage an increased share of MS&AD’s general investment account. 

The partnership aims to support MS&AD's portfolio through Barings' investment capabilities in credit, real assets, capital solutions, and emerging markets.

As part of the agreement, MSI will appoint one director to the Barings Board of Directors, and several MS&AD employees will be seconded to various teams within Barings.

“We have long admired Barings’ global investment capabilities and solutions-oriented approach, and we are excited to help advance Barings’ long-term objectives with MassMutual,” Shinichiro Funabiki, Representative Director, President & CEO of MS&AD, said in a press release.

“We also look forward to collaborating closely with MassMutual and Barings to invest in new and existing strategies to evolve our portfolio and to meet our needs as a global insurance company,” Funabiki added.