M&G (MNG) Investor Update summary

Strategic partnership announcement and overview

• M&G and Dai-ichi Life have established a long-term strategic partnership, with Dai-ichi acquiring a 15% stake in M&G via on-market purchases, subject to regulatory approval, and gaining the right to appoint a board director upon reaching the threshold.

• The partnership targets at least $6 billion in new business flows for M&G and $2 billion for Dai-ichi over five years, with $3 billion from Dai-ichi's balance sheet and $3 billion from distribution, mainly into high-alpha strategies.

• M&G will become Dai-ichi's preferred asset management partner in Europe, expanding access to Japanese and Asian distribution channels and supporting international growth.

• The collaboration includes joint development of investment capabilities, co-investment opportunities, and potential life insurance collaboration in Europe and Japan.

• The agreement includes a two-year lock-up, a 19.99% ownership cap, and customary contractual restrictions and governance provisions.

Growth, operational impact, and financial context

• The partnership supports growth in private and international assets, focusing on high-margin private asset strategies such as real estate and private credit.

• No change to existing cost reduction targets or cost trajectory; the simplification program remains in place to support disciplined growth.

• The deal is structured for strategic alignment and long-term value creation, with both parties sharing in future growth.

• M&G managed £345.9 billion in assets under management and administration as of 31 December 2024, serving 4.5 million retail and over 900 institutional clients globally.

• The impact of the partnership is expected to be gradual, with material benefits anticipated from 2026 and beyond.

Market, strategic rationale, and leadership commentary

• Dai-ichi sought a European partner to diversify beyond the U.S., selecting M&G for its strong investment performance and complementary business model.

• The partnership leverages Dai-ichi's appetite for private assets and M&G's established presence in Europe and Asia, aiming for long-term value creation.

• Both companies highlight the complementary nature of their businesses and shared growth ambitions, with opportunities for organic growth and bolt-on acquisitions.

• Leadership from both firms emphasize mutual benefit, client service, and sustainable shareholder returns.

• There is growing institutional interest in European and Asian assets, with mandates expected to take time to materialize.