M&G Shares Surge: Announces Long-Term Partnership with Dai-ichi Life

M&G (LON: MNG) shares surged on Friday after the company unveiled a long-term strategic partnership with Japan’s Dai-ichi Life Holdings. 

The move is expected to deliver billions in new business flows and deepen M&G’s presence in Asia.

According to a joint announcement, the partnership will see M&G become Dai-ichi Life’s preferred asset management partner in Europe. 

Over the next five years, the deal is expected to generate at least $6 billion in new business for M&G and $2 billion for Dai-ichi Life through joint product development, balance sheet investments, and distribution channels.

As part of the agreement, Dai-ichi Life intends to acquire a roughly 15% stake in M&G via on-market purchases. 

The Japanese insurer will also gain the right to appoint a director to M&G’s board, reinforcing its long-term commitment to the partnership.

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“With this alliance, we are bringing together our respective capabilities to create a mutually beneficial partnership that will create value over the long-term,” said Dai-ichi Life CEO Tetsuya Kikuta.

Andrea Rossi, Group CEO of M&G, said the deal was “recognition of M&G’s strengths and clear confidence in our leadership, strategy and long-term prospects.”

The companies also signalled plans to explore further collaboration in life insurance and co-invest in new asset management capabilities across Europe and Asia.

M&G shares were up sharply by more than 7% in early Friday trading following the announcement. The move adds to its recent strong run, with he stock now up over 20% for the year-to-date and over 15% in the last month.