• Dai-ichi’s 15% stake in M&G is projected to boost profits by JPY15bn (US$105m) annually. • The deal improves Dai-ichi’s portfolio and global investment reach. • Dai-ichi’s solvency ratio is projected to dip slightly from 210% by March 2025.
Dai-ichi’s planned acquisition of a 15% stake in London-based financial group M&G is expected to increase the Japanese insurer’s profit by JPY15bn (US$105m) per year, according to estimates by Fitch.
The credit ratings agency also expects Dai-ichi’s economic solvency ratio to dip slightly from 210% at end-March 2025 as a result of the acquisition.
On Friday, M&G announced the planned acquisition in a disclosure. The deal will be completed via on-market purchases, making Dai-ichi M&G’s largest shareholder, subject to regulatory approval in both Japan and the UK.
The purchase price of about JPY160bn is considered relatively low compared to the firm’s estimated consolidated net assets of JPY3.4bn and cash equivalents of JPY2.46bn as of end-March 2025.
Fitch remains bullish, stating that the deal will enhance Dai-ichi’s portfolio diversification and international investment capability over the medium term. Dai-ichi Life also plans to delegate US$3bn of its investment assets to M&G to support global diversification.
The tie-up is essentially neutral to M&G’s credit ratings in the near to medium term, Fitch says. However, it could lead to greater diversification of earnings sources in the long term, with M&G expecting to generate around US$6bn in new business flows from the agreement.
The partnership could also facilitate M&G’s entry into life insurance markets across the Asia-Pacific (APAC) region.
As of end-2024, 56% of M&G’s third-party assets under management (AUM), totalling £159bn (US$214.9bn), came from markets outside the UK. Of these international assets, Europe accounted for the largest share at 69%, followed by APAC (16%), the Middle East and Africa (12%), and the Americas (3%).
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Fitch: Dai-ichi’s M&G stake to boost profits, diversification
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28 August
(Re)in Summary
• Dai-ichi’s 15% stake in M&G is projected to boost profits by JPY15bn (US$105m) annually.
• The deal improves Dai-ichi’s portfolio and global investment reach.
• Dai-ichi’s solvency ratio is projected to dip slightly from 210% by March 2025.
Dai-ichi’s planned acquisition of a 15% stake in London-based financial group M&G is expected to increase the Japanese insurer’s profit by JPY15bn (US$105m) per year, according to estimates by Fitch.
The credit ratings agency also expects Dai-ichi’s economic solvency ratio to dip slightly from 210% at end-March 2025 as a result of the acquisition.
On Friday, M&G announced the planned acquisition in a disclosure. The deal will be completed via on-market purchases, making Dai-ichi M&G’s largest shareholder, subject to regulatory approval in both Japan and the UK.
The purchase price of about JPY160bn is considered relatively low compared to the firm’s estimated consolidated net assets of JPY3.4bn and cash equivalents of JPY2.46bn as of end-March 2025.
Fitch remains bullish, stating that the deal will enhance Dai-ichi’s portfolio diversification and international investment capability over the medium term. Dai-ichi Life also plans to delegate US$3bn of its investment assets to M&G to support global diversification.
The tie-up is essentially neutral to M&G’s credit ratings in the near to medium term, Fitch says. However, it could lead to greater diversification of earnings sources in the long term, with M&G expecting to generate around US$6bn in new business flows from the agreement.
The partnership could also facilitate M&G’s entry into life insurance markets across the Asia-Pacific (APAC) region.
As of end-2024, 56% of M&G’s third-party assets under management (AUM), totalling £159bn (US$214.9bn), came from markets outside the UK. Of these international assets, Europe accounted for the largest share at 69%, followed by APAC (16%), the Middle East and Africa (12%), and the Americas (3%).
Dai-ichi’s acquisition reflects a broader shift among Japanese insurers seeking growth overseas amid a slowing domestic market. In a similar move, its subsidiary TAL acquired a 15% share in Australian insurer Challenger Limited back in April.
28 August
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