Japan’s Dai-ichi Life Holdings has agreed to acquire a 15% stake in British asset manager M&G plc for over £850 million. This transaction positions Dai-ichi as M&G’s largest shareholder and establishes a long-term strategic partnership aimed at expanding both firms’ reach across Europe and Asia.
About the Companies
Dai-ichi Life Holdings, Inc.
Founded in 1902, Dai-ichi Life is Japan’s third-largest life insurer by revenue, trailing only Japan Post Insurance and Nippon Life. Headquartered in Tokyo, the company transitioned from a mutual company to a stock company in 2010 and is listed on the Tokyo Stock Exchange. As of 2015, Dai-ichi Life managed assets totaling approximately $346.9 billion.
M&G plc
M&G plc is a prominent UK-based financial services company specializing in asset management and insurance. Spun off from Prudential plc in 2019, M&G operates through various segments, including M&G Investments and M&G Wealth. The company is listed on the FTSE 100 index and manages a diverse portfolio of investment and savings products.
Strategic Partnership Details
The partnership is designed to be mutually beneficial, with expectations of generating at least $6 billion in new business for M&G and $2 billion for Dai-ichi Life over the next five years. Key elements of the agreement include:
- Preferred Partnership: M&G will become Dai-ichi’s preferred asset management partner in Europe, while Dai-ichi will serve as M&G’s preferred partner in Japan and other Asian markets.
- Board Representation: Dai-ichi will have the right to appoint a non-executive director to M&G’s board, contingent upon maintaining its 15% stake.
- Stake Increase Restrictions: Dai-ichi is restricted from increasing its stake in M&G beyond 19.99% for a period of two years. The collaboration aims to leverage M&G’s expertise in asset management to enhance Dai-ichi’s investment offerings, while M&G gains improved access to Asian markets through Dai-ichi’s established presence.
Market Implications
Following the announcement, M&G’s shares experienced a significant uptick, rising over 8% and reaching levels not seen since June 2021. This surge reflects investor confidence in the strategic alignment and growth prospects resulting from the partnership.
The deal also underscores a broader trend of Japanese insurers seeking growth opportunities abroad amid domestic market challenges, such as an aging population and low interest rates. Earlier in 2025, Dai-ichi Life increased its stake in Australia’s Challenger Limited to 15.1%, further exemplifying its international expansion strategy
Conclusion
The acquisition of a 15% stake in M&G by Dai-ichi Life represents a strategic effort by both companies to enhance their global footprints and capitalize on growth opportunities across Europe and Asia. By combining Dai-ichi’s insurance expertise with M&G’s asset management capabilities, the partnership is poised to deliver substantial value to clients and shareholders alike.