In a significant move to bolster international collaboration, Japanese insurer Dai-ichi Life has announced the acquisition of a 15% stake in British asset manager M&G plc. This strategic partnership, valued at approximately $8 billion, aims to enhance both companies’ global reach and investment capabilities.

Under the terms of the agreement, Dai-ichi Life will purchase the stake through on-market transactions, becoming M&G’s largest shareholder. The partnership is expected to generate at least $6 billion in new business flows into M&G’s funds over the next five years, with half allocated to high-fee, high-alpha strategies. Concurrently, Dai-ichi anticipates $2 billion in new business flows, leveraging M&G’s expertise to expand its international footprint.

The collaboration designates M&G as Dai-ichi’s preferred asset management partner in Europe, facilitating deeper access to Asian markets for M&G. The deal also includes potential collaborations in life insurance across Europe and Japan, as well as co-investment opportunities in asset management.

Andrea Rossi, CEO of M&G, described the alliance as a catalyst for expansion, emphasizing that it centers on scaling growth, enhancing distribution networks, and fostering innovative product development. It boosts our growth ambitions internationally and in private markets, and gives us distribution access to Japan and Asia where we want to expand.”

Tetsuya Kikuta, CEO of Dai-ichi Life, highlighted that the collaboration will serve as a strategic vehicle to deepen the company’s footprint in the UK and broader European markets—advancing its mission to evolve into a globally leading insurance provider.

According to the terms of the agreement, Dai-ichi Life will gain the right to nominate a board member to M&G, contingent on maintaining its 15% ownership. The deal also imposes a two-year lock-up period and includes a standstill clause that restricts Dai-ichi from boosting its shareholding above 19.99%.

This partnership reflects a broader trend of Japanese financial institutions seeking strategic alliances with Western firms to enhance global operations and respond to domestic challenges such as inflation and an aging population.